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M_ Appraisal_25-504170.1 Revised PartnerVal, Tesla - Renton_250721_v1.pdf
www.PARTNERval.com Tesla Dealership - Renton 700 S Grady Way Renton, WA, 98057 Report Date July 16, 2025 Project Numbers Partner: 25-504170.1 Prepared for: 700 Grady LLC www.PARTNERval.com July 16, 2025 700 Grady LLC c/o Mary Roloff Executive Assistant Car Pros Automotive Group Subject: Appraisal Report Tesla Dealership - Renton 700 S Grady Way Renton, WA 98057 Partner Project No. 25-504170.1 Dear Ms. Roloff, Partner Valuation Advisors is pleased to submit the accompanying appraisal of the referenced property. The purpose of the appraisal is to develop an opinion of the Market Value As Is of the Fee Simple interest in the property. The client for the assignment is 700 Grady LLC, and the intended use is for Internal asset valuation. The subject property is an existing one and partial two-story auto dealership containing 9,789 square feet of rentable area. The improvements were constructed in 1996 and renovated in 2005 and 2015. The property features a showroom, eight service bays, and second level office space. The property is currently occupied by Tesla. The lease ends in February 2026 and the current rental rate was not disclosed. At the request of the client, we have not considered the in-place lease within our analysis and have appraised the fee simple interest in the property. The subject comprises a single tax parcel containing 2.12 acres, or 92,353 square feet of land area. The appraisal is intended to conform with the Uniform Standards of Professional Appraisal Practice (USPAP), the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute, and applicable state appraisal regulations. To report the assignment results, we use the Appraisal Report option of Standards Rule 2-2(a) of USPAP. As USPAP gives appraisers the flexibility to vary the level of information in an Appraisal Report depending on the intended use and intended users of the appraisal, we adhere to the Partner Valuation Advisors internal standards for an Appraisal Report. Based on the valuation analysis in the accompanying report, and subject to the definitions, assumptions, and limiting conditions expressed in the report, our opinions of value are as follows: The value conclusions contained herein are not subject to any extraordinary assumptions or hypothetical conditions. Premise Interest Appraised Effective Date Value Conclusion Market Value As Is Fee Simple June 25, 2025 $6,610,000 www.PARTNERval.com The opinions of value expressed in this report are based on estimates and forecasts that are prospective in nature and subject to considerable risk and uncertainty. Events may occur that could cause the performance of the property to differ materially from our estimates, such as changes in the economy, interest rates, capitalization rates, financial strength of tenants, and behavior of investors, lenders, and consumers. Additionally, our opinions and forecasts are based partly on data obtained from interviews and third-party sources, which are not always completely reliable. Although we are of the opinion that our findings are reasonable based on available evidence, we are not responsible for the effects of future occurrences that cannot reasonably be foreseen at this time. If you have any questions or comments regarding the contents of this report, please don’t hesitate to contact the undersigned. Thank you for the opportunity to be of service. Sincerely, Partner Valuation Advisors, LLC P. Ryan McDonald, MAI, FRICS Jimmy Ryerson Managing Director Vice President Certified General Appraiser Certified General Appraiser WA Certificate # 24029170 WA Certificate # 1102573 +1 (314) 226-1219 +1 (425) 648-1316 rmcdonald@partnerval.com jryerson@partnerval.com Page 4 SUMMARY OF SALIENT FACTS The value conclusions contained herein are not subject to any extraordinary assumptions or hypothetical conditions. Summary of Salient Facts and Conclusions Property Name Tesla Dealership - RentonAddress700 S Grady Way, Renton, WA 98057CountyKingProperty Type Retail-CommercialProperty Subtype Vehicle RelatedOwner of Record 700 GRADY LLCSite DetailTax ID 192305-9096Land Area 2.12 acres; 92,353 SFHighest and Best Use - As Vacant Commercial useHighest and Best Use - As Improved Continued retail useImprovement DetailGross Building Area (SF)9,789Rentable Area (SF)9,789Percent Leased 100.0%Year Built 1996Renovations2005/2015Valuation DetailDate of Report July 16, 2025Exposure Time 9 - 12 MonthsMarketing Time 9 - 12 MonthsValue ConclusionsAppraisal Premise Interest Appraised Date of Value Value Conclusion Value Conclusion/SFCost Approach $6,380,000 $652.00Sales Comparison Approach $6,610,000 $675.00Income Approach Not Used Not UsedMarket Value As Is Fee Simple June 25, 2025 $6,610,000 $675.00The values reported above are subject to definitions, assumptions and limiting conditions set forth in the accompanying report of which this summary is a part. No party other than the client and intended users may use or rely on the information, opinions and conclusions contained in the report. It is assumed that the users of the report have read the entire report, including all of the definitions, assumptions and limiting conditions contained therein. Page 5 TABLE OF CONTENTS 1.0 GENERAL INFORMATION................................................................................................................ 6 2.0 SCOPE OF WORK .............................................................................................................................. 8 3.0 ECONOMIC/SURROUNDING AREA ANALYSIS ............................................................................ 10 4.0 MARKET ANALYSIS ....................................................................................................................... 15 5.0 SITE ANALYSIS ............................................................................................................................... 27 6.0 ZONING & OTHER RESTRICTIONS ANALYSIS ............................................................................. 31 7.0 PROPERTY IMPROVEMENTS ANALYSIS ...................................................................................... 32 8.0 HIGHEST & BEST USE ANALYSIS .................................................................................................. 38 9.0 VALUATION ANALYSIS ................................................................................................................. 40 10.0 COST APPROACH ........................................................................................................................... 41 11.0 IMPROVED SALES COMPARISON APPROACH ............................................................................ 48 12.0 VALUE CONCLUSION ..................................................................................................................... 53 13.0 CERTIFICATION .............................................................................................................................. 54 14.0 ASSUMPTIONS & LIMITING CONDITIONS .................................................................................. 55 APPENDIX: APPENDIX A: QUALIFICATIONS APPENDIX B: DEFINITIONS APPENDIX C: FINANCIALS AND PROPERTY INFORMATION APPENDIX D: COMPARABLES APPENDIX E: ENGAGEMENT LETTER Page 6 1.0 GENERAL INFORMATION 1.1 Identification Subject Property The subject property has been outlined in red and highlighted in yellow. Property Identification Property Name Tesla Dealership - Renton Property Major Type Retail-Commercial Property Type Vehicle Related Address 700 S Grady Way City Renton County King State WA Zip 98057 Tax ID 192305-9096 Legal Description Lengthy, see appendix Owner 700 GRADY LLC Page 7 1.2 Most Recent Sale & Ownership History Per our research, no sales or transfers of the subject property have occurred within a three-year period prior to the effective appraisal date. 1.3 Pending Transaction & Current Listing Information Pursuant to our research, we are not aware of any pending transaction related to the subject property, nor are we aware that the property is currently listed for sale, as of the effective date of this appraisal. 1.4 Appraisal Information Client 700 Grady LLC Purpose of the Appraisal To estimate the Market Value As Is Intended Use Internal asset valuation Intended User(s)700 Grady LLC and Car Pros Automotive Group Appraisal Report Based on the intended users understanding of the subject's physical, economic and legal characteristics, and the intended use of this appraisal, an appraisal report format was used. Property Rights Fee Simple Page 8 2.0 SCOPE OF WORK 2.1 Scope of Services To determine the appropriate scope of work for the assignment, we considered the intended use of the appraisal, the needs and sophistication of the user, the complexity of the property, and other applicable factors. Appraisers may consider three approaches to value when determining an opinion of value. For the purposes of this assignment, Partner concluded that the following approaches were appropriate to sufficiently support our value opinion: The Sales Comparison Approach was utilized to determine a value for the land as though vacant for utilization within the Cost Approach. The Cost Approach is most applicable in valuing new or proposed construction, and the land value, cost new and depreciation are well supported. The cost approach is also typically utilized when valuing special use properties, such as auto dealerships. Therefore, the Cost Approach is applicable to the analysis and has been utilized in this report and given secondary consideration in arriving at a value conclusion. There have been relevant transactions of a recent tenure of properties which are similar in nature to the subject property. Therefore, a Sales Comparison Approach was developed for this assignment and utilized as the primary analysis methodology upon which we rely to form our value opinion. The Income Approach is not a typical approach taken by investors in this space and is not considered necessary for credible assignment results and has not been developed for this assignment. The absence of the Income Capitalization Approach does not reduce the reliability of the value(s) concluded to in this report. 2.2 Research Our opinions and forecasts are based at least in part on data obtained from interviews and third-party sources, which are not always completely reliable and no warranty to their reliability is inferred. We are of the opinion that our conclusions are reasonable based on evidence researched and analyzed, we are not responsible for data inaccuracies or the effects of future occurrences that cannot be reasonably foreseen at this time. 2.3 Inspection Valuation Approach Applicability U tilized Cost Approach Applicable Yes Sales Comparison Approach Applicable Yes Income Capitalization Approach Applicable No Name Inspected Extent D ate of Inspection P. Ryan McDonald, MAI, FRICS No N/A N/A Jimmy Ryerson Yes Interior/Exterior 6/25/2025 Page 9 2.4 Significant Appraisal Assistance Significant real property assistance was provided by Andrew Thompson, who has not signed this certification, including conducting research on the subject and transactions involving comparable properties, performing appraisal analyses, and assisting in report writing. Further, it is acknowledged the Jimmy Ryerson made a significant professional contribution to this appraisal consisting of participating in the property inspection only. They did not perform any other valuation analysis or participate in the writing of this report. Page 10 3.0 ECONOMIC/SURROUNDING AREA ANALYSIS 3.1 Area Overview The subject is located in the Seattle MSA, as defined by the U.S. Office of Management and Budget. The Seattle MSA is 5,870 square miles in size with a population density of 711 people per square mile. Page 11 3.2 Population The Seattle MSA has an estimated 2025 population of 4,176,271. The Seattle MSA experienced an average population growth of 31,502 residents per year over the 2020 - 2025 period. 3.3 Employment Trends The percentage of college graduates within the Seattle MSA exceeds the national average. 3.4 Major Employers The table below contains the major employers for the Seattle MSA which represent a broad diversity across the Education, Technology-Telecommunications, Healthcare, and Insurance sectors: Category Trade Area Area (sq miles)3 28 79 2,116 5,870 66,476 3,533,719 Density (pop/sq mile)4,243 3,978 3,438 1,114 711 121 96 Population Population 2010 (census)11,048 96,465 232,731 1,931,239 3,439,807 6,724,542 308,745,538 Population 2020 (census)13,114 110,392 262,711 2,269,675 4,018,762 7,705,281 331,449,281 Population 2025 (current)13,319 112,437 269,951 2,356,008 4,176,271 8,023,688 337,470,185 Population 2030 (5 yr proj)13,382 114,232 274,346 2,443,752 4,328,587 8,312,929 342,640,129 % Change 2020-Current 0.3% 0.4% 0.5% 0.7% 0.8% 0.8% 0.4% % Change 5 Yr Forecast 0.1% 0.3% 0.3% 0.7% 0.7% 0.7% 0.3% % Change 2010-2020 1.7% 1.4% 1.2% 1.6% 1.6% 1.4% 0.7% Source: Esri 2025 1 Mile 3 Mile 5 Mile King County Seattle MSA Washington United States Category 2023 Total (NAICS11-99) Employees 12,242 87,623 140,928 1,245,005 1,890,357 3,351,720 153,323,159 2023 Total (NAICS11-99) Businesses 1,077 4,967 8,716 86,446 136,549 259,683 12,297,209 2023 Unemployment Rate 6.3% 4.7% 5.4% 4.5% 4.3% 4.5% 4.3% % College Graduate 35.0% 39.0% 41.8% 57.8% 48.0% 40.5% 36.1% Avg Work Travel Time 29 30 27 27 Source: Esri 2025 5 Mile King County Seattle MSA Washington United States1 Mile 3 Mile 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Source:Seattle Chamber of Commerce Amazon Nordstrom University of Washington Paccar Expedia Group Alaska Air Group Microsoft Boeing Starbucks Costco Page 12 3.5 Median Household Income Median household income for the Seattle MSA is $113,257, which is 16.74% higher than Washington and 55.99% higher than the country’s median household income. 3.6 Household Summary Approximately 58.86% of housing units within a 5-mile radius are owner-occupied, which is below the Seattle MSA average of 60.01% The median year built for homes within a 5-mile radius of the subject is 1981 which is older than the Seattle MSA average of 1984. Category Household Income Median HH Income $76,628 $95,088 $106,201 $124,182 $113,257 $97,013 $72,603 Average HH Income $104,475 $125,070 $144,895 $177,598 $160,268 $136,115 $107,008 Per Capita Income $48,388 $49,174 $53,132 $71,740 $62,497 $52,812 $41,310 Population Distribution by Income -$15,000 711 2,984 5,690 59,841 98,562 216,318 12,298,792 $15,000 - $24,999 489 2,040 3,851 31,164 56,987 140,146 9,182,566 $25,000 - $34,000 444 1,987 4,249 36,151 62,186 152,440 9,577,830 $35,000 - $49,999 392 3,108 6,485 54,520 105,295 252,613 14,019,287 $50,000 - $74,999 984 6,770 13,481 101,587 194,815 432,582 21,371,036 $75,000 - $99,999 870 6,161 12,645 94,454 185,941 397,065 16,639,881 $100,000 - $149,999 900 8,459 18,541 168,831 310,389 596,999 21,948,226 $150,000 - $199,999 541 5,241 12,138 119,710 208,303 354,618 11,109,323 $200,000+858 7,414 21,671 284,119 403,424 564,272 13,766,961 Source: Esri 2025 1 Mile 3 Mile 5 Mile King County Seattle MSA Washington United States Category Avg HH Size 2.14 2.53 2.72 2.43 2.52 2.53 2.53 Total Households 2010 (census)5,242 38,536 87,085 789,228 1,357,475 2,620,077 116,716,292 Total Households 2020 (census)6,141 43,638 96,856 917,764 1,564,432 2,974,692 126,817,580 Total Households 2025 (current)6,190 44,164 98,750 950,382 1,625,915 3,107,079 129,917,449 Total Households 2030 (5 yr proj)6,175 44,492 99,510 981,438 1,682,513 3,227,456 133,099,006 HH % Change 2020-Current 0.16% 0.24% 0.39% 0.70% 0.77% 0.87% 0.48% HH % Change 5 Yr Forecast -0.05% 0.15% 0.15% 0.65% 0.69% 0.76% 0.49% HH % Change 2010-2020 1.60% 1.25% 1.07% 1.52% 1.43% 1.28% 0.83% Housing Units Total Housing Units 6,501 46,330 102,699 1,005,942 1,715,603 3,340,362 144,063,309 Median Year Built 1986 1983 1981 1982 1984 1984 1979 Housing Units % Vacant 4.8% 4.7% 3.9% 5.5% 5.2% 7.0% 9.8% Housing Units % Owner Occupied 29.3% 49.4% 58.9% 55.3% 60.0% 64.1% 64.9% Housing Units % Renter Occupied 70.7% 50.6% 41.1% 44.7% 40.0% 35.9% 35.1% Median Home Value $632,253 $669,477 $709,990 $921,763 $774,215 $632,296 $308,943 Source: Esri 2025 5 Mile King County Seattle MSA Washington United States1 Mile 3 Mile Page 13 3.7 Neighborhood Analysis 3.7.1 Access & Linkages Primary access to the area is provided by Interstate 5, Interstate 405 and WA-167. The nearest interchange is SR-515 at Interstate 405 which is located 0.31 miles from the subject. The major commercial corridors or throughfares in this neighborhood are S Grady Way and Rainier Avenue South. The main source of transportation in the surrounding area is the automobile. Public transportation in the local area is operated by King County Metro and Sound Transit and is considered average compared to other areas in the region. There nearest major airport to the subject is Seattle–Tacoma International Airport, located 4.63 miles from the subject property. 3.7.2 Neighborhood Demand Generators The subject’s surrounding area is classified as suburban based on the NCREIF Classification. The closest major commercial corridors to the subject are S Grady Way and Rainier Avenue South, which provide average supporting retail and entertainment services. Development activity in the immediate area has been predominantly of multi-family, retail, and hospitality uses. In addition, development has been moderate in the last three years. 3.7.3 Retail and Public Services Local government services like fire and police are provided in this area at the city level. The subject is located in the Renton school system. The closest colleges and universities are Embry-Riddle Aeronautical University, Renton Technical College, and University of Washington, which provide a broad range of degree and continuing education programs. The nearest retail and public services to the subject are detailed in the following chart. Primary Access to Area Public Transportation Provider Main Source of Transportation Description Distance from Subject Nearest On-Ramp Nearest Bus Stop Nearest Train Station Nearest Airport Tukwila Station Seattle–Tacoma International Airport (Miles)SR-515 at Interstate 405 SR-515 at South Grady Way (Miles) Automobile King County Metro and Sound Transit Interstate 5, Interstate 405 and WA-167 Access, Linkages and Transit 0.31 0.08 7,678.06 4.63 (Miles) (Miles) Page 14 3.8 Economic/Surrounding Area Analysis Conclusion The subject property is located in the Seattle MSA, which exceeds the State of Washington in median household income and is expected to be in-line with the State of Washington in terms of population growth over the next 5 year forecast. These facts positively impact the growth of demand for real estate. The Seattle MSA has also performed well over the last decade in terms of creating new jobs. Given these economic signals, we project growth in the Seattle MSA will remain strong and positive, resulting in a continued modest demand for real estate. Additionally, the existing mix of uses and services provided in the area is generally meeting the needs of the neighborhood. The area has adequate vehicular and public transportation access to employment centers and retail. Growing population is generating demand for additional commercial real estate of all types, and specifically retail-commercial properties. A diverse and stable employment base suggest continued stability and growth. We conclude there is implied demand for additional retail-commercial development in this area. Category Description Distance from Subject Grocery Shopping Center Regional Mall Fire Station Police Station Hospital Airport Safeway (Miles) Westfield Southcenter 2.37 (Miles) Public Services and Amenities (Miles) Renton Shopping Center Renton Regional Fire Authority Station 1 Renton Police Department Valley Medical Center Seattle–Tacoma International Airport (Miles) 2.05 4.63 0.58 0.51 0.87 0.35 (Miles) (Miles) (Miles) Page 15 4.0 MARKET ANALYSIS 4.1 Overview of Seattle Retail Market As the 15th largest retail metropolitan area in the country based on inventory, Seattle has a robust retail market which is analyzed in the following section. 4.2 Seattle Inventory & Occupancy The Seattle market is the 15th largest retail market in the country. Its vacancy rate of 3.4% compares favorably to the national retail average vacancy rate of 4.1%. Absorption in the market has averaged 263K SF (0.1% of average inventory) and -549K SF (-0.3%) over the last 10 and 5 years, respectively. Absorption is reported at -192K SF, representing a 65.0% increase from the 5 year average. New supply under construction is 461K SF, which represents 0.25% of existing inventory. Year/Current Quarter Buildings Inventory(M SF)Vacancy Rate Completions(K SF)Completions % Net Absorption (K SF) Under Construction (K SF) Net Delivered (K SF) New Supply Rate Demand (M SF) 2015 15,969 180.8 4.21% 1,358 0.75% 1,906 2,861 874 1.58% 173.2201615,977 181.3 3.71% 854 0.47% 701 5,611 406 3.09% 174.6201715,993 182.3 3.58% 1,520 0.83% 1,649 2,352 913 1.29% 175.7201816,010 182.4 3.24% 737 0.40% 790 3,669 182 2.01% 176.5201916,021 182.7 3.04% 1,083 0.59% 325 3,238 164 1.77% 177.1202016,029 182.2 2.84% 562 0.31% -578 1,466 -556 0.80% 177.0202116,011 181.9 3.11% 490 0.27% -589 1,163 -453 0.64% 176.2202215,961 181.2 2.82% 396 0.22% 27 1,602 -484 0.88% 176.1202315,958 181.2 3.10% 336 0.19% -689 1,142 -105 0.63% 175.5202415,941 180.9 3.42%65 0.04% -918 1,722 -264 0.95% 174.72025 Q1 15,936 180.9 3.44%36 0.02% 96 461 13 0.25% 174.610 Year Averages 15,987 181.7 3.31% 740 0.41% 263 2,483 68 1.37% 175.75 Year Averages 15,980 181.5 3.06% 370 0.20% -549 1,419 -373 0.78% 175.9202515,939 180.9 3.49% 346 0.19% 103 461 107 0.25% 174.6202615,951 180.8 3.45% 166 0.09% -106 -278 0.00% 174.6202715,953 180.5 3.36% 226 0.13% -57 -222 0.00% 174.5202815,953 180.4 3.36% 408 0.23% -97 -42 0.00% 174.4202915,953 180.4 3.40% 481 0.27% -63 31 0.00% 174.3Projection Averages 15,950 180.6 3.41% 325 0.18% -44 92 -81 0.05% 174.5Source: CoStar ©2025, reprinted with permission. All rights reserved. Net Absorption-192K SF Last 12 Mo 65.0% Above 5 Yr Average -164K SF Last 12 Mo -0.1% of inventory New Supply (Net Delivered) Seattle Retail Market Trends Seattle Retail Market Analysis Inventory180.9M SF 15th Largest Retail MSA Vacancy3.44% +2 bps YoY Page 16 4.3 Seattle Rental Rates & Rent Growth The average retail rental rate grew 0.41% year over year to $2.45 PSF. Cumulative rental rate growth over the last 10 years and 5 years has been 3.63% and 3.25% per annum, respectively. Rental rate growth was Seattle Retail Market Rental Trends Year/Current Quarter Asking Rent/SF/Mo Rent Growth (YoY) 2015 $1.78 -2016 $1.85 3.87%2017 $1.92 3.93%2018 $2.00 4.15%2019 $2.09 4.47%2020 $2.17 3.79%2021 $2.25 3.71%2022 $2.32 3.18%2023 $2.39 3.24%2024 $2.45 2.32%2025 Q1 $2.45 0.41%10 Year Averages $2.12 3.63%5 Year Averages $2.31 3.25%2025 $2.46 0.43%2026 $2.49 1.32%2027 $2.54 1.80%2028 $2.60 2.28%2029 $2.64 1.85%Projection Averages $2.55 1.81%Source: CoStar ©2025, reprinted with permission. All rights reserved. Rental Rate$2.45 +0.41% YoY Seattle Retail Market Rental Rates & Rent Growth Source: CoStar ©2025, reprinted with permission. All rights reserved. $.00 $.50 $1.00 $1.50 $2.00 $2.50 $3.00 -2% -1% 0% 1% 2% 3% 4% 5% (R e n t $ / S F ) (V a c a n c y R a t e ) Rental Rate Growth Vacancy Rate Rental Rate Page 17 increasing prior to the pandemic, a trend that has continued since its impact has subsided. Rental rate growth is expected to average 1.8% over the next 5 years. 4.4 Seattle Market Supply & Demand 4.5 Seattle Sales Volume & Average Price Annual retail sales volume for the Seattle area averaged $1,385M and $1,273M over the last 10 and 5 years, respectively. The average sales price per SF has experienced minimal growth from $229.22 to $332.51 over the last decade, representing annual compound price growth of 4.2%. Prices have decelerated in the last two years, and it will continue to decelerate over the coming 5-years to a pace of 1.8%/year. Source: CoStar ©2025, reprinted with permission. All rights reserved. 168 170 172 174 176 178 180 182 184 (M S F ) Supply Demand Source: CoStar ©2025, reprinted with permission. All rights reserved. $.00 $50.00 $100.00 $150.00 $200.00 $250.00 $300.00 $350.00 $400.00 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 (S a l e $ / S F ) ($ M ) Sales Volume Sales Price PSF Page 18 4.6 Seattle Cap Rate vs. National Average The Seattle market experienced capitalization rate contraction over the past ten years. Retail assets in the Seattle market typically trade at capitalization rates that are lower than the national average. 4.7 Seattle Submarket Review The subject property is located in Seattle's 2nd largest submarket based on inventory: Renton/Tukwila. This submarket commands the 14th highest rental rates in the market. Occupancy for the submarket (95.1%) is lower than the average of the market (96.6%). Source: CoStar ©2025, reprinted with permission. All rights reserved. 5.4% 5.6% 5.8% 6.0% 6.2% 6.4% 6.6% 6.8% 7.0% Cap Rates National Cap Rates #SubMarket Name Inventory SF (K)% of Market Market Rent/SF/Mo Rental Rate Rank Occupancy Rate Occupancy Rank 1 Tacoma Suburban 15,021 8.3% $2.00 32 96.9% 232Renton/Tukwila 11,669 6.4% $2.78 14 95.1% 323Edmonds/Lynnwood 11,248 6.2% $2.51 18 95.7% 314Federal Way/Auburn 10,727 5.9% $2.28 26 96.5% 265N Snohomish County 8,941 4.9% $2.06 30 97.4% 166Ballard/U Dist 8,523 4.7% $2.70 16 96.8% 247E King County 7,601 4.2% $2.42 22 97.2% 18All Other Submarkets 107,653 59.4% $2.50 96.6%Totals 181,385 100.0% $2.45 96.6%Source: CoStar ©2025, reprinted with permission. All rights reserved. Page 19 4.8 Renton/Tukwila Submarket Inventory & Occupancy Year Buildings Inventory(M SF)% of Market Vacancy Rate Completions(K SF)Completions % Net Absorption (K SF) Under Construction (K SF) Net Delivered (K SF) New Supply Rate Demand (M SF) 2015 633 11.8 6.5% 4.15%30 0.26% 127 96 28 0.82% 11.32016635 11.7 6.5% 3.48%30 0.26% -239 2,367 -52 20.21% 11.32017638 12.0 6.6% 2.64% 588 4.89% 678 199 0.00% 11.72018638 11.9 6.5% 1.83%13 0.11%-1 40 13 0.34% 11.72019639 11.9 6.5% 1.80%0.00% 62 -2 0.00% 11.72020637 11.9 6.5% 2.14%0.00% -285 7 -122 0.06% 11.62021637 11.8 6.5% 2.13%8 0.07%3 9 8 0.08% 11.62022631 11.7 6.5% 1.22%0.00% 43 -105 0.00% 11.62023631 11.7 6.5% 2.60%0.00% -238 -58 0.00% 11.42024629 11.7 6.5% 3.50%0.00% -264 0.00% 11.32025 Q1 629 11.7 6.5% 4.94%0.00%6 0.00% 11.110 Year Averages 635 11.8 6.5% 2.54%67 0.57% -11 252 -9 2.13% 11.55 Year Averages 633 11.8 6.5% 2.31%2 0.01% -148 3 -55 0.03% 11.52025629 11.7 6.4% 5.26%0.00% -64 -14 0.00% 11.12026629 11.6 6.4% 5.49%1 0.01% -34 -28 0.00% 11.02027629 11.6 6.4% 5.46%13 0.11%-6 -16 0.00% 11.02028629 11.6 6.4% 5.47%23 0.20% -13 -5 0.00% 11.02029629 11.6 6.4% 5.57%28 0.24% -13 -1 0.00% 11.0Projection Averages 629 11.6 6.4% 5.45%13 0.11% -26 -13 0.00% 11.0Source: CoStar ©2025, reprinted with permission. All rights reserved. Renton/Tukwila Retail Submarket Trends 6.5% of the Seattle - WA USA metro market.+228 bps YoY 79.4% Below 5 Yr Average 0.0% of inventory Inventory Vacancy Net Absorption New Supply (Net Delivered) Renton/Tukwila Retail Submarket Analysis 11.7M SF 4.94%-266K SF Last 12 Mo 0K SF Last 12 Mo Page 20 4.9 Renton/Tukwila Submarket Rental Rates & Rent Growth 4.10 Submarket New Supply There are currently no buildings under construction in the subject's submarket. The Seattle Market has 0.3% of existing inventory under construction which similarly does not represent a threat to long-term retail operations unless there is an unexpected degradation in renter demand. 4.11 Retail Market & Submarket Summary and Conclusions Based on the submarket trends, ongoing performance of the retail properties, and the influence of new supply, the conditions in the Renton/Tukwila submarket area expected to have a neutral-to-positive impact on the subject’s performance in the near term. Renton/Tukwila Retail Submarket Rental Trends Year Asking Rent/SF/Mo Rent Growth (YoY) 2015 $2.02 -2016 $2.10 3.89%2017 $2.18 3.84%2018 $2.27 4.22%2019 $2.37 4.61%2020 $2.46 3.75%2021 $2.55 3.67%2022 $2.64 3.35%2023 $2.73 3.36%2024 $2.79 2.16%2025 Q1 $2.78 0.42%10 Year Averages $2.41 3.65%5 Year Averages $2.63 3.26%2025 $2.80 0.35%2026 $2.82 1.04%2027 $2.87 1.50%2028 $2.92 2.01%2029 $2.97 1.58%Projection Averages $2.88 1.53%Source: CoStar ©2025, reprinted with permission. All rights reserved. +0.42% YoY Rental Rate Renton/Tukwila Retail Submarket Rental Rates & Rent $2.78 Market Inventory SF (K) # of Construction Buildings SF Under Construction (K)% of Inventory Renton/Tukwila Submarket 11,669 0Seattle Market 180,863 15 460.7 0.3%Source: CoStar ©2025, reprinted with permission. All rights reserved. Page 21 5.0 NEW CAR DEALER INDUSTRY OVERVIEW November 2024 – IBISWorld The information in this analysis is from the IBISWorld Industry Report 44111: New Car Dealers in the US (November 2024). According to IBISWorld, the New Car Dealers industry sells new and used passenger vehicles. Vehicles include passenger cars, light trucks, sport utility vehicles (SUVs) and passenger vans. New car dealers also sell parts and provide repair services. Industry at a Glance Operators in the New Car Dealers industry sell new and used passenger vehicles, provide repair and maintenance services and offer financing and insurance options. The industry is highly cyclical in nature and vulnerable to fluctuations in employment, consumer confidence and interest rates. In the past five years, industry revenue rose at a CAGR of 1.5% to $1.2 trillion, including a 2.8% drop in 2022. The COVID-19 pandemic caused slowdowns in factory production, leading to ongoing shortages for parts, computer chips and vehicles. The skyrocketing price of new vehicles led to a 16.4% spike in revenue in 2021, regardless of lower sales volume. Most consumers finance new and used vehicle purchases, exposing the industry to changing interest rates. Low interest rates improve profitability for industry operators as floorplan financing, or the expense to finance new vehicle inventory, becomes less costly. In 2022, interest rates rose from extreme lows to limit recent spikes in inflation. The limits of the new car market's elasticity are continuously tested. Supply has slowly adjusted to excess demand, diminishing further price growth. An interest rate-induced fall in demand, coupled with growing supply, contributes to worsening industry performance. Industry revenue is projected to increase to a CAGR of 2.0%, remaining around $1.2 trillion by 2029. Higher interest rates will continue to limit employment opportunities and disposable income, which will negatively affect the industry's crucial financing segment. Consumers have taken out long-term loans on new and used vehicles, putting the industry at higher risk during difficult financial conditions. Page 22 Page 23 Key External Drivers Consumer confidence Index When consumers are more confident in their financial outlook, they're more willing to make large purchases like new vehicles. In 2024, the Consumer Confidence Index improved and represents renewed optimism for the industry. Average Age of Vehicle Fleet The average vehicle fleet age is used to forecast future vehicle purchases. An increase in the age of vehicles represents pent-up demand for new vehicles. The average age of a vehicle declines when disposable income rises and demand for affordable, fuel-efficient vehicles increases. However, the quality of vehicles has risen, leading them to last longer. Consumers have held on to older vehicles for a longer period of time. The average age of the vehicle fleet will increase in 2025, representing a potential opportunity for the industry. Yield on 10-year Treasury Note Since automobiles are typically financed, demand tends to ebb and flow with fluctuations in interest rates. As interest rates increase, financing vehicles becomes more expensive and less desirable. The yield on the 10-year Treasury note, analogous to the interest rate set by the Federal Reserve, is expected to continue to decrease in 2025. Per Capita disposable income During periods of low disposable income, discretionary spending declines. Similarly, when disposable income levels are high, discretionary spending increases. Rising disposable income boosts consumers' capacity to support debt-funded consumption, such as purchasing a new car. Per capita disposable income will increase slightly in 2025. Regulation for the Automotive sector Increased regulation of fuel economy, emissions and safety standards can raise the cost of manufacturing cars and trucks. Dealers pass these costs on to customers, raising product prices and potentially reducing demand. Regulation for the automotive sector is expected to hold steady in 2025, posing no added threat to the industry. Page 24 Current Performance New car dealer revenue has grown at a CAGR of 1.5% in the past five years. Dealers have faced major supply chain disruptions: • Massive semiconductor shortages left upstream automakers without key components, leading to longer lead times and severe inventory shortages for new car dealers. As a result, new and used car prices surged, generating higher per-unit revenue. However, higher costs pushed some consumers out of the market, limiting growth. • According to NADA, the average number of new vehicle sales has declined from pre-pandemic levels, but retail prices have skyrocketed, leading to robust net gains for the industry. Supply chain disruptions, vehicle advancements and shifting consumer preferences have contributed to higher costs for dealers, but have enabled companies to charge higher prices. • However, supply chain disruptions have also contributed to higher oil prices. Climbing gas prices make operating combustion vehicles more expensive, encouraging some individuals to prefer public transportation, though most states and cities lack adequate public transportation. Climbing interest rates have posed a major threat to the industry: • Economic uncertainty has limited revenue growth for new car dealers. Notably, high interest rates have made auto loans more expensive, forcing buyers to pay higher principles and monthly interest payments. These conditions have especially limited lower-income buyers with weaker credit scores; according to Experian, monthly payments rose an average of $28 for subprime buyers but decreased by $3 for superprime buyers. • Unfavorable economic conditions will also alter consumer preferences. Volatile consumer confidence has pushed some consumers to purchase used cars or put off car-buying entirely. Page 25 Similarly, lower earners have expressed limited interest in more expensive electric vehicles and other added features. • Conversely, budgetary constraints have encouraged other consumers to prioritize long-term cost savings, spurring demand for hybrids and more fuel-efficient models. Regardless, prime+ buyers display more stable vehicle replacement trends, driving growth through the current period. • However, the US Federal Reserve has started to cut interest rates at the end of 2024. Falling rates may start to loosen budgetary constraints, revitalizing growth through the end of the current period. Reliance on public transportation has declined in the past five years. Mass moving to suburbs and less-dense metropolitan areas created demand for cars in the past five years. Many Americans left cities like New York in the wake of COVID-19 restrictions. Suburbs and smaller cities lack robust public transportation infrastructure, creating demand for new cars. Migration to Southern states is also on the rise, many of which prefer car transportation. Online car shopping threatens operators in the new and used vehicle markets. Online car shopping presents a threat to new car dealers. Carvana, Car Gurus and other competitors offer convenient, low-price alternatives to in-person dealerships. Online car dealers offer a platform and market for private exchange of used cars. While new car dealers predominantly focus on new vehicles, competition in the used market affects revenue. Industry Outlook New car dealer revenue is projected at a CAGR of 2.0%, remaining around $1.2 trillion by 2029 with profit margins remaining at 1.8%. Improving economic conditions will facilitate revenue growth: • Strengthening economic conditions through the outlook period will benefit new car dealers. Climbing consumer confidence, per capita disposable income and consumer spending will encourage consumers to purchase new vehicles and trade up to more expensive brands. • Similarly, strong corporate profit will encourage taxi, rideshare and rental companies to upgrade and expand existing vehicle fleets, especially as higher incomes encourage individuals to travel more. Ancillary threats from luxury rideshare companies like Revel may also encourage competitors to upgrade vehicle fleets, benefiting new car dealers with corporate fleet segments. • Notably, interest rates will also recede through the outlook period, making vehicle financing more affordable, especially for lower-income buyers. This trend will spur new vehicle sales through the outlook period, creating favorable conditions for new car dealers. Consumer preferences will continue to evolve: • Consumer vehicle preferences have rapidly evolved over the past decade, forcing dealers to constantly change inventories and manage potential sunk costs. According to NADA, light-trucks, including SUVs and crossovers, have accounted for a higher share of total revenue each year. • These vehicles have higher manufacturer’s suggested retail prices (MSRPs), enabling dealers to reap greater per-unit costs. In addition, consumers will increasingly prefer added safety, efficiency and Page 26 connectivity features when buying a new car, especially as automakers refine these customizable add-ons. • Dealers can offer more premium car-buying packages, benefiting long-term revenue growth. With more customization options available, the sales process becomes lengthier as dealers work closely with customers to design and configure their ideal vehicles. This trend may continue to reduce the number of customers served within a given timeframe, impacting sales efficiency. Electric vehicles pose unique opportunities and challenges: • The development and advancement of electric and hybrid vehicles will drive sales through the outlook period. Significant improvements in fuel economy will encourage cost-conscious buyers to upgrade and reduce or entirely eliminate fuel costs. Even so, lukewarm consumer acceptance of EVs and uneven charging infrastructure will remain limiting factors in EV sales, pushing consumers instead toward hybrid vehicles. • Regardless, government policy will push for increased EV sales, giving manufacturers, dealers and consumers various incentives, grants and tax breaks to support the EV supply chain. Similarly, sales goals will force more EV sales. These trends may vary by state; for example, California has imposed California Air Resources Board approved a measure to ban the sale of new gas-only cars by 2035. • However, slowing adoption rates may lead to lower inventory turnover. Since longer holding times reduce the profit earned on each sale, this trend poses a major threat to dealers overstocking EVs. • Additionally, used EV and hybrid prices have cratered; this development will upset purchasing habits, discouraging some buyers from purchasing or leasing new vehicles and potentially crippling a major, rapidly expanding source of demand. Page 27 6.0 SITE ANALYSIS 6.1 Site Summary The subject site is outlined in red. Parcel ID Gross Land Area (Acres) Gross Land Area (Sq Ft)Topography Shape 192305-9096 2.12 92,353 Level Rectangular Source for Land Area:Public Records Page 28 Subject Parcel Parcel ID 192305-9096 Land Use Commercial (Retail) Highest and Best Use Site as Vacant Commercial use Highest and Best Use Site as Improved Continued retail use Traffic Count (Primary Frontage)37,000 Traffic Count Date 2023 Legal Description Lengthy, see appendix Map Latitude 47.472375 Map Longitude -122.211212 Site Analysis & Comments The site has average and typical utility. Subject Parcel Corner Lot Yes Primary Frontage Street Name S Grady Way Secondary Frontage Street Name Shattuck Ave S Frontage - Primary Street (Feet)685 Frontage - Secondary Street (Feet)176 Average Depth (Feet)176 Access Good Site Visibility Good Drainage Assumed adequate Landscaping Typical landscaping Topography Level Shape Rectangular Subject Parcel All Utilities to Site?Available Adequacy of Utilities The subject's utilities are typical and adequate for the market area. Page 29 6.2 Flood Zone Status Flood Map Subject Parcel FEMA Map #53033C0977G FEMA Map Date 8/19/2020 Flood Zone X In Flood Plain Is Not Flood Zone Comments The subject is outside the 500 year flood plain. The appraiser is not an expert in this m atter and is reporting data from FEMA maps. Site in Earthquake Zone The subject is located in UBC Seismic Zone 3 Earthquake Hazard Risk Very High Encumbrance / Easement Description There are no known adverse encumbrances or easements. Please reference Assumptions and Limiting Conditions. Environmental Issues There are no known adverse environmental conditions on the subject site. Please reference Assumptions and Limiting Conditions. Page 30 6.3 UBC Seismic Map As discussed, the subject property is located in the UBC Seismic Zone 3. Given the comparables considered within our analysis are located in the same zone, our appraisal assumes no adverse impact for the subject property. 6.4 Environmental Hazards A Phase I Environmental Site Assessment, prepared by Partner Engineering and Science, and dated February 19, 2019, was provided for our review. The assessment was performed in general conformance with the scope and limitations as detailed in the ASTM Practice E1527-13 Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process. This assessment has revealed evidence of recognized environmental conditions and/or environmental issues in connection with the subject property. Our appraisal assumes no adverse impact from the recognized environmental conditions. Page 31 7.0 ZONING & OTHER RESTRICTIONS ANALYSIS According to the local planning department, there are no pending or prospective zoning changes. It appears that the current use of the site is a legally conforming use. Partner Valuation Advisors have reviewed the zoning requirements to the best of our abilities but are not zoning professionals. For a comprehensive analysis of existing conditions, including the Subject Property’s use and improvement conformance status, please consider engaging a dedicated expert from the Partner Family of Companies by contacting Zoning@partneresi.com and/or seeking the counsel of a land use attorney familiar with the local municipality. 7.1 Encumbrance/Easements/Restrictions We were not provided with a current title report to review. We are not aware of any easements, encroachments, or restrictions that would adversely affect value. Our valuation assumes no adverse impacts from easements, encroachments, or restrictions, and further assumes that the subject has clear and marketable title. 7.2 Site Analysis Conclusion Overall, the physical characteristics of the site and the availability of utilities result in functional utility suitable for a variety of uses including those permitted by zoning. Zoning Authority City of Renton Zoning District CA Zoning Code Commercial Arterial Current Use Legally Conforming The subject is legal and conforming use. Zoning Change Likely A zoning change is unlikely. Permitted Uses Multiple commercial and retail uses including vehicle sales Maximum Site Coverage 0.75 Minimum Lot Area 5,000 Square Feet Front Set Back Distance 15 ft. Side Yard Distance None, except 15 ft. if lot abuts or is adjacent to a lot zoned residential. Back Yard Distance Non, except 15 ft if lot abuts a lot zoned residential Maximum Building Height 50 ft. Zoning Parking Requirements None stated Zoning Data Source City of Renton Code of Ordinances Page 32 8.0 PROPERTY IMPROVEMENTS ANALYSIS 8.1 Property Overview The subject property is an existing one and partial two-story auto dealership containing 9,789 square feet of rentable area. The improvements were constructed in 1996 and renovated in 2005 and 2015. The property features a showroom, eight service bays, and second level office space. The property is currently occupied by Tesla. The lease ends in February 2026 and the current rental rate was not disclosed. At the request of the client, we have not considered the in-place lease within our analysis and have appraised the fee simple interest in the property. The subject comprises a single tax parcel containing 2.12 acres, or 92,353 square feet of land area. 8.2 Property Summary 8.2.1 Improvements Sizes Property Name Tesla Dealership - Renton Property Type Retail-Commercial Property Subtype Vehicle Related Number of Buildings 1 Land Area (Acres)2.12 Rentable Area 9,789 Estimated Effective Age 10 Estimated Useful Life 45 Remaining Economic Life 35 Predominant Building Class Class B Predominant Construction Class D Construction Quality Average Year Built 1996 Year Renovated 2005/2015 Predominant Condition of All Buildings Average Overall Land to Building Ratio 9.43 to 1 Overall Floor Area Ratio (FAR)0.11 Parking Type Paved open surface parking Total Number of Parking Spaces 179 Source for Parking Count Appraiser Count Parking Ratio Type Spaces per RA Parking Ratio 18.29 spaces per 1,000 square feet Parking Adequacy Adequate Source For Square Foot Areas Public Records Subject Building Gross Building Area 9,789 Rentable Area 9,789 Source for SF Area Public Records Building Efficiency Ratio 1.00 Page 33 8.2.2 Building Envelope 8.2.3 Parking 8.2.4 Mechanical, Electrical & Plumbing 8.2.5 Building & Interiors 8.2.6 Deferred Maintenance Based on our inspection and discussions with property management, the subject property has no significant items of deferred maintenance. 8.2.7 Capital Expenditures In discussions with ownership, they indicated they plan to renovate and expand the subject property in 2026 upon expiration of the Tesla lease. It should be noted, at the request of the client, this renovation and expansion is not included within the scope of this report and not considered in our analysis. Subject Building Foundation Poured concrete slab Frame Wooden Frame Exterior Walls Metal Windows Fixed Casement Roof Type Flat Roof Cover Rubber Membrane Subject Building Surface Parking Spaces 179 Parking Type Paved open surface parking Parking Adequacy Adequate Parking Condition Average Parking Ratio 18.29 spaces per 1,000 square feet Subject Building Heating Electric Cooling Package Units Electrical Assumed Adequate Plumbing Condition Assumed Adequate Fire Sprinkler None Subject Building Floor Covering Carpet, Linoleum, Tile Walls Painted drywall Ceiling Cover Acoustic ceiling panels Interior Lighting A mix of fluorescent and incandescent lighting. Restrooms Men's and Women's Page 34 8.3 Subject Photographs Subject exterior, signage, and parking Photo Taken June 25, 2025 Subject exterior Photo Taken June 25, 2025 Subject parking Photo Taken June 25, 2025 Subject exterior (service bays) Photo Taken June 25, 2025 Subject exterior Photo Taken June 25, 2025 Subject exterior Photo Taken June 25, 2025 Page 35 Subject Photographs (cont.) Subject office Photo Taken June 25, 2025 Subject service bays Photo Taken June 25, 2025 S Grady Way (facing southwest) Photo Taken June 25, 2025 Subject breakroom Photo Taken June 25, 2025 Subject showroom Photo Taken June 25, 2025 S Grady Way (facing northeast) Photo Taken June 25, 2025 Page 36 8.4 Real Estate Tax Analysis 8.4.1 Real Estate Tax Overview Real estate taxes in Washington State represent ad valorem taxes, meaning a tax applied in proportion to value. The real estate taxes for an individual property is determined by dividing the assessed value of a property by $1,000, then multiplying the levy (tax) rate. In Washington State, properties are assessed and taxed based on 100% of their fair market value. King County has a fiscal year that runs from January 1st to December 31st. Taxes are due in two installments, April 30th and October 31st. Properties are reassessed each year on January 1st, however according to conversations with King County, assessed values typically reflect market conditions 18-24 months behind the date of assessment. Another factor to consider in the overall tax is the tax rate. The tax rate is applied to the assessed value to determine a property’s tax. The location of a property will determine what district rates make up the overall tax rate. The tax rates may go up or down from year to year depending on voter approved bonds and/or levies. Because of this, it is conceivable that taxes may increase even though assessed value remains unchanged, or that the taxes may go up more than 3% when the assessed value increased 3%. A portion of the real estate taxes for the subject are unpaid, but not yet due. The following chart further described real estate assessment in King County. 8.4.2 Real Estate Tax Jurisdictional Summary 8.4.3 Real Estate Assessment & Taxes The assessor’s opinion of Market Value is $4,517,500 which is below our concluded market value. However, this is reasonable given King County Assessed values typically lag current market conditions by 18-24 months. Subject Assessing Jurisdiction King County Assessor Tax Year(s)2024 Total Tax Rate 1.0273% Assessment Year(s)2025 Reassessment Cycle Annually Last Reassessment 2024 Does a sale trigger a reassessment?No Taxes are Current?Yes Tax ID Land Improvements Total Assessment Market Value Tax Rate Ad Valorem Taxes 192305-9096 $4,086,300 $431,200 $4,517,500 $4,517,500 1.0273% $46,407 Page 37 8.4.4 Assessed Value Changes 8.4.5 Real Estate Tax Comparables Taxes for comparable properties range from $2.05 to $7.13 per square foot, with an average of $4.77. The subject’s taxes are currently $4.74 per square foot. 8.4.6 Real Estate Tax Conclusion On balance, the subject’s taxes appear low when comparing our concluded market value to the assessor’s opinion of market value, but reasonable when compared to the real estate tax comparables presented above. Assessed Year Land Assessment Improvements Assessment Total Assessment Assessment Ratio Tax Rate Ad Valorem Taxes Total Taxes % Change 2022 $2,978,100 $439,900 $3,418,000 100.00% 1.1114% $37,988 $37,988 2023 $3,878,500 $429,300 $4,307,800 100.00% 0.9582% $41,276 $41,276 8.7% 2024 $4,086,300 $470,300 $4,556,600 100.00% 1.0753% $48,996 $48,996 18.7% 2025 $4,086,300 $431,200 $4,517,500 100.00% 1.0273% $46,407 $46,407 -5.3% Property Name Rentable Area Total Assessment Assmt. / Rentable Area Total Taxes Taxes / Rentable Area Tesla Dealership - Renton 9,789 $4,517,500 $461 $46,407 $4.74 Volvo Dealership - Seattle 10,625 $7,745,900 $729 $75,797 $7.13 Saturn of Renton 8,881 $4,423,500 $498 $45,575 $5.13 Thrifty Auto Sales 10,000 $1,799,700 $180 $20,505 $2.05 Minimum 8,881 $1,799,700 $180 $20,505 $2.05 Average 9,835 $4,656,367 $469 $47,292 $4.77 Maximum 10,625 $7,745,900 $729 $75,797 $7.13 Page 38 9.0 HIGHEST & BEST USE ANALYSIS 9.1 Process Before a property can be valued, an opinion of highest and best use must be developed for the subject site, both as if vacant, and as improved or proposed. By definition, the highest and best use must be: • Physically possible. • Legally permissible under the zoning regulations and other restrictions that apply to the site. • Financially feasible. • Maximally productive or capable of producing the highest value from among the possible, permissible and financially feasible uses. 9.2 Highest & Best Use As If Vacant Legally Permissible The subject is legal and conforming use. Zoning Code, District Commercial Arterial, CA Permitted Uses Multiple commercial and retail uses including vehicle sales Zoning Change Likely?A zoning change is unlikely. Physically Possible Yes Land Size 2.12 acres, 92,353 square feet Shape Rectangular Topography Level Utilities The subject's utilities are typical and adequate for the market area. Access Good Visibility Good Functional Utility Average Financially Feasible Positive Net Income/Rate of Return?Yes Maximally Productive Does the Use Return Maximum Value?Yes Highest and Best Use as Vacant:Commercial use Page 39 9.3 Highest & Best Use As Improved Conclusion The subject property has historically been owner-occupied, and as of the effective date, is leased to Tesla and produces a positive cash flow that we expect will continue. Therefore, a continuation of this use is concluded to be financially feasible. Based on our analysis, there does not appear to be any alternative use that could reasonably be expected to provide a higher present value than the current use, and the value of the existing improved property exceeds the value of the site, as if vacant. For these reasons, continued retail use is concluded to be maximally productive and the highest and best use of the property as improved. 9.4 Most Probable Buyer Taking into account the size and characteristics of the property and its current occupancy, the likely buyer is a local investor such as an individual, or an owner-user if not leased. Legally Permissible The subject is legal and conforming use. Zoning Code District Commercial Arterial, CA Permitted Uses Multiple commercial and retail uses including vehicle sales Zoning Change Likely?A zoning change is unlikely. Physically Possible Yes Improvement Size 9,789 square feet Condition Average Quality Average Functional Utility Average Financially Feasible Positive Net Income/Rate of Return?Yes Maximally Productive Does the Use Return Maximum Value?Yes Highest and Best Use as Improved:Continued retail use Page 40 10.0 VALUATION ANALYSIS 10.1 Analyses Overview The Sales Comparison Approach was utilized to determine a value for the land as though vacant for utilization within the Cost Approach. The Cost Approach is most applicable in valuing new or proposed construction, and the land value, cost new and depreciation are well supported. The cost approach is also typically utilized when valuing special use properties, such as auto dealerships. Therefore, the Cost Approach is applicable to the analysis and has been utilized in this report and given secondary consideration in arriving at a value conclusion. There have been relevant transactions of a recent tenure of properties which are similar in nature to the subject property. Therefore, a Sales Comparison Approach was developed for this assignment and utilized as the primary analysis methodology upon which we rely to form our value opinion. The Income Approach is not a typical approach taken by investors in this space and is not considered necessary for credible assignment results and has not been developed for this assignment. The absence of the Income Capitalization Approach does not reduce the reliability of the value(s) concluded to in this report. Page 41 11.0 COST APPROACH 11.1 Cost Approach Overview The Cost Approach is based on the principle of substitution which implies that a rational person would pay no more for a property than the cost to construct a replacement property, assuming no undue delay in the process. The methodology applies these steps: 1. Estimate the land value according to its Highest and Best Use. 2. Estimate the replacement cost of the building and site improvements. 3. Estimate the physical, functional and/or external depreciation accrued to the improvements. The sum of these steps results in an estimated depreciated replacement cost value indication. 11.2 Land Value To develop an opinion of the subject’s land value, as if vacant and available to be developed to its highest and best use, we utilize the sales comparison approach. We arrive at a land value indication by researching, verifying, and analyzing sales of comparable properties. Page 42 11.2.1 Land Comparables Summary Address Mi. to Subj.Zoning Land SF Topography Sale PriceSale Date Acres Shape Price/Land SF 1)9.8 62,018 Level $2,016,800 6/13/2025 1.42 Rectangular $32.52 2)1.6 72,895 Level $3,100,0003/28/2024 1.67 Rectangular $42.53 3)1.1 13,504 Level $750,0001/1/2024 0.31 Rectangular $55.54 Commercial Arterial 92,353 Level 2.12 Rectangular Co m p a r a b l e 1 Co m p a r a b l e 2 Co m p a r a b l e 3 Heavy Commercial Urban Center 2 2712 Auburn Way N, Auburn, WA Co m p a r a b l e 4 751 Park Avenue N, Renton, WA 240-250 Park Avenue N, Renton, WA Neighborhood Commercial Tesla Dealership - Renton 700 S Grady Way, Renton, WA 98057 Page 43 11.2.2 Land Sales Comparable Adjustment Factors 11.2.3 Land Comparables Adjustment Grid Adjustment Factor Description Adjustments Sales Status Downward adjustments for listings or pending contracts for risk of closing No adjustments required. Real Property Rights Fee simple, leased fee, leasehold, etc.No adjustments required.Financing Terms Non-market financing terms like seller-financing or assumption of debt No adjustments required. Conditions of Sale Non-arms length buyer or seller motivations No adjustments required.Market Conditions Appreciation or depreciation in the real estate market over time No adjustments required. Location Area influences on sales price, determined by the median household income within a 3-mile radius No adjustments required. Access/Exposure Ease of access from major arterials, frontage/visibility, traffic counts and nearby complementary uses Comparables 1, 2 and 3 have been adjusted upward due to their inferior access/exposure.Size Economies of scale exist when purchasing a larger site Comparables 1, 2 and 3 have been adjusted downward due to their smaller size.Topography Physical land features such as degree of slope No adjustments required.Zoning Permitted uses of the property No adjustments required.Entitlements Governmental approval for annexation, zoning, utility extensions, total floor area, construction permits, and occupancy or use permits No adjustments required. Flood Zone Differences in flood zone risk No adjustments required. Subject Tesla Dealership - Renton City, State Renton, WASale Date Sale PriceAcres 2.12Land SF 92,353 Topography LevelShapeRectangularFlood Zone X Price per Land SF Sales Status –Closed Sale 0%Closed Sale 0%Closed Sale 0%Property Rights Fee Simple Fee Simple 0%Fee Simple 0%Fee Simple 0% Financing Terms –Cash to Seller 0%Cash to Seller 0%Cash to Seller 0%Conditions of Sale –Normal 0%Normal 0%Normal 0%Sale Date/Mkt. Conditions 0%/annum 6/13/25 0% 3/28/24 0% 1/1/24 0% Cumulative Market Adjusted Price Location $95,088 $94,724 0% $106,870 0% $102,324 0%Access/Exposure 37,000 6,469 10% 13,792 5% 10,037 5% Size 92,353 62,018 -5% 72,895 -5% 13,504 -20%Topography Level Level 0%Level 0%Level 0%Zoning CA C3 0%UC-2 0%CN 0% Flood Zone X X 0%X 0%X 0%Net Property AdjustmentFinal Adjusted Price Overall Adjustment Range of Unadjusted PricesRange of Adjusted PricesMedian Adjusted PriceAverage Adjusted PriceIndicated Value/SF Auburn Way Redevelopment Site Future LivAway Suites Site Park Avenue Vacant Land Comparable 1 Comparable 2 Comparable 3 Auburn, WA Renton, WA Renton, WA $2,016,800 $3,100,000 $750,000 6/13/2025 3/28/2024 1/1/2024 62,018 72,895 13,5041.67 0.31 Roughly rectangular Rectangular RectangularLevelLevel X X$42.53 $55.54 $32.52 - $55.54$34.15 - $47.21$42.53$41.30$45.00 15% $32.52 X Level 1.42 $32.52 5%$47.21$42.53$34.15 $42.53 $55.54 0%-15% The Cumulative Market Adjusted Price is the subtotal adjusted price after the compounding transaction adjustments. The Net Property Adjustment is the sum of other adjustments applied before the Final Adjusted Sale Price. The Overall Adjustment is the sum of the absolute values of all adjustments. 10%25% Page 44 11.2.4 Land Value Conclusion Prior to adjustment, the sales reflect a range of $32.52/SF - $55.54/SF. After adjustment, the range is narrowed to $34.15/SF - $47.21/SF, with an average of $41.30/SF. To arrive at an indication of value, we place primary emphasis on comparables 2 and 3 as they are closest in proximity to the subject property. We conclude to a value of $45.00/SF. Land Value 6/25/2025 Indicated Value/SF $45.00Subject Land SF 92,353Indicated Value $4,155,885Value Indication - Rounded $4,160,000 Page 45 11.3 Cost Approach We utilize Marshall Valuation Service (MVS) - a nationally recognized source for cost data - to estimate direct costs for the subject. 11.3.1 Direct Unit Costs In addition to direct costs, MVS includes certain indirect costs such as architectural and engineering fees, and interest on building loan funds during construction. Our direct cost estimate using MVS is shown below. A summary of the Direct Unit Costs utilizing Marshall Valuation Service (MVS) is presented in the following chart. 11.3.2 Indirect Costs MVS does not include all of the indirect costs (soft costs) that are appropriate in a replacement cost estimate. Therefore, we add an allowance for the following indirect costs that are not contained within our direct cost estimate: taxes and carrying costs on land during construction; legal and accounting fees; and marketing and finance costs prior to stabilization. We estimate indirect costs at 10% of direct costs based on a review of the soft costs included in the developer’s budget, inclusive of contingency fees. 11.3.3 Entrepreneurial Profit The final component of the replacement cost estimate is entrepreneurial profit, which is the financial reward that a developer would expect to receive in addition to recovering all direct and indirect costs. This is the expected compensation that would be necessary to motivate a developer to undertake the project. Given the risk profile of this project, we estimate entrepreneurial profit at 15% of the Direct & Indirect Costs. Cost Unit Type MVS Sec./Page or Source MVS Building Type Construction Class MVS Quality Base Cost Adjusted Base Cost Building Improvements $165.00Tesla Dealership - Renton Sec. 14/Page 30 Complete Auto Dealerships (455)C lass D Average $165.00 $165.00Site Improvements $2,609.10Surface Parking Sec. 66/Page 3 Surface Parking N/A Average $2,600.00 $2,600.00LanscapingSec. 66/Page 8 Lanscaping N/A Average $9.10 $9.10Furniture, Fixtures & Equipment (FF&E)$0.00 Source: Marshall Valuation Service (MVS) ©2024 Cost Unit Type Adjusted Base Cost Current Multiplier Local Multiplier Story Ht. Multiplier Perimeter Multiplier Adjusted Base Cost Annual Adj. %0.00%Unit Cost Estimate Quantity Units Direct Cost Estimate Building Improvements $2,052,093Tesla Dealership - Renton $165.00 1.050 1.210 1.000 1.000 $209.63 0.00% $209.63 9,789 SF $2,052,093Site Improvements $631,968Surface Parking $2,600.00 1.080 1.210 1.000 1.000 $3,397.68 0.00% $3,397.68 179 Spaces $608,185Lanscaping$9.10 1.080 1.210 1.000 1.000 $11.89 0.00% $11.89 2,000 SF $23,784Furniture, Fixtures & Equipment (FF&E)$0Direct Cost Total $2,684,061 Type Cost Estimate Building Improvements $2,052,093 Site Improvements $631,968 Total MVS Direct Costs $2,684,061 Total MVS Direct Costs per SF $274.19 Page 46 11.3.4 Replacement Cost New After considering the applicable base unit costs, multipliers, indirect costs and entrepreneurial profit (if any), we have estimated the Replacement Cost New of the subject property at $2,891,890. 11.3.5 Depreciation Analysis There are three general areas of depreciation: physical deterioration, functional obsolescence and external obsolescence. Depreciation may be curable or incurable, the test being that money spent to cure the depreciation be gained in value. If the depreciation costs more to fix than will be gained in value, then the depreciation is considered incurable. 11.3.5.1 Physical Depreciation This results from depreciation from aging and use. This type of depreciation may be curable or incurable. Physical depreciation has been estimated via the Age-Life Method of Depreciation, which estimates depreciation by dividing the property’s effective age by its total economic life. Our estimate of physical depreciation is shown in the chart to follow. 11.3.5.2 Functional Obsolescence This results from a lack of utility or desirability due to design or market perception of the improvements. This type of depreciation may be curable or incurable. Functional obsolescence is a loss in value due to changes in market tastes and standards. No functional obsolescence is applicable to the subject property given that it is a new asset developed to today’s standards. 11.3.5.3 External (Economic) Obsolescence This is due to circumstances outside the property itself, such as industry, demographic and economic conditions or an undesirable proximate use. This type of depreciation is rarely curable. A deduction for external (economic) obsolescence is not considered necessary for the subject. 11.3.6 Depreciated Replacement Cost The chart below details our estimate of depreciation and obsolescence at the subject property. Cost Unit Type Direct Cost Estimate Indirect Costs (%)Indirect Costs ($)Direct + Indirect Costs Entrepreneurial Profit (%)Entrepreneurial Profit ($)Replacement Cost Estimate Building Improvements $2,052,093 $205,209 $2,257,302 $338,595 $2,595,897Tesla Dealership - Renton $2,052,093 10% $205,209 $2,257,302 15% $338,595 $2,595,897Site Improvements $631,968 $63,197 $695,165 $104,275 $799,440Surface Parking $608,185 10% $60,818 $669,003 15% $100,350 $769,354Lanscaping$23,784 10% $2,378 $26,162 15%$3,924 $30,086Furniture, Fixtures & Equipment (FF&E)$0 $0 $0 $0 $0Replacement Cost New $3,395,337 Source: Marshall Valuation Service (MVS) ©2024 Name Cost Direct Cost Estimate $2,684,061Plus: Indirect Costs at 10.0%$268,406Subtotal$2,952,467Plus: Entrepreneurial Profit at 15.0%$442,870Total Replacement Cost $3,395,337 Page 47 After accounting for depreciation (if any), we have estimated the Depreciated Replacement Cost of the subject property at $2,216,848. 11.3.7 Cost Approach Conclusion Combining the Land Value with the Depreciated Replacement Cost of the subject results in the final value indication via the Cost Approach. Name Replacement Cost Estimate Effective Age Economic Life Age-Life Depreciation (%) Age-Life Depreciation ($)Subtotal Functional Obsolescence (%)Functional Obsolescence ($)Total Depreciation (%)Total Depreciation ($) Depreciated Replacement Cost Depreciated Unit Cost Building Improvements $2,595,897 $576,866 $2,019,031 $201,903 30% $778,769 $1,817,128Tesla Dealership - Renton $2,595,897 10 45 22% $576,866 $2,019,031 10%$201,903 30% $778,769 $1,817,128 $185.63Site Improvements $799,440 50% $399,720 $399,720 0%$0 50% $399,720 $399,720Surface Parking $769,354 10 20 50% $384,677 $384,677 $0 $384,677 $384,677 $2,149.03Lanscaping$30,086 5 10 50% $15,043 $15,043 $0 $15,043 $15,043 $7.52Total$3,395,337 29% $976,586 $2,418,751 8%$201,903 35% $1,178,489 $2,216,848 Type Total Cost Total Cost per SF Reconciled Replacement Cost New $3,395,337 $346.85Total Depreciation % 34.71%Total Depreciation $1,178,489 $120.39Total Depreciated Replacement Cost $2,216,848 $226.46 As Is 6/25/2025 Concluded Land Value $4,160,000 Depreciated Cost of Improvements $2,216,848 Cost Approach Upon Stabilization Value Indication $6,376,848 Rounded Upon Stabilization Value Conclusion $6,380,000 Page 48 12.0 IMPROVED SALES COMPARISON APPROACH The sales comparison approach develops an indication of value by comparing the subject to sales of similar properties. The steps taken to perform the sales comparison approach analysis are: 1. Identify property sales comparable in nature to the subject property. 2. Research, assemble, and verify pertinent data for the most relevant sales. 3. Analyze the sales for material differences in comparison to the subject. 4. Reconcile the sales analysis into a value indication for the subject. 12.1 Sales Comparison Search Criteria We initially researched car dealership properties in the subject’s immediate area, but needed to expand out to a larger search area as recent sale transactions were limited. As such, the search was expanded to include comparables throughout the State of Washington. All sales have been researched through numerous sources and, when possible, verified by a party close to the transaction. Characteristic Filter Criteria Sales Status Closed SaleReal Property Rights Fee SimpleFinancing Terms Cash to SellerConditions of Sale NormalMarket Conditions January 1, 2023 - PresentLocation (MHHI)State of WashingtonSize4,000 SF - 20,000 SF Page 49 12.2 Sales Comparables Summary Name Mi. to Subj.Yr. Built Rentable Area Sale PriceAddressSale Date Yr. Reno Occ.Price/SF 1)Auburn Car Dealership 12.4 2001 7,168 $3,660,00011/5/2024 N/A Owner-Occ.$510.60 2)Former Northwest Motorsport 25.8 2018 15,291 $10,250,0008/23/2024 N/A Owner-Occ.$670.33 3)Lexus of Seattle 24.2 2005 32,118 $19,840,0006/4/2024 N/A Owner-Occ.$617.72 4)Puyallup Car Dealership 19.3 1964 15,446 $10,000,0005/8/2024 N/A Owner-Occ.$647.42 1996 9,789 2005 100.0% Auburn, WA Lynnwood, WA Co m p a r a b l e 4 Co m p a r a b l e 5 Co m p a r a b l e 1 Co m p a r a b l e 2 Co m p a r a b l e 3 Lynnwood, WA Puyallup, WA Tesla Dealership - Renton 700 S Grady Way, Renton, WA 98057 Page 50 12.3 Sales Comparable Adjustments 12.3.1 Market Conditions Adjustment Given the special use nature of the subject property and the transaction dates of the comparable sales, we have made no market conditions adjustment within our analysis. Adjustment Factor Description Adjustments Sales Status Downward adjustments for listings or pending contracts for risk of closing No adjustments required. Real Property Rights Fee simple, leased fee, leasehold, etc.No adjustments required.Financing Terms Non-market financing terms like seller-financing or assumption of debt No adjustments required. Conditions of Sale Non-arms length buyer or seller motivations No adjustments required.Market Conditions Appreciation or depreciation in the real estate market over time No adjustments required. Location (MHHI)Area influences on sales price, determined by the median household income within a 3-mile radius Comparable 1 has been adjusted upward due to its inferior location. Access/Exposure Ease of access from major arterials, frontage/visibility, traffic counts and nearby complementary uses Comparable 1 has been adjusted upward due to its inferior access/exposure.Size Economies of scale exist when renting a larger amount of space, ie. the inverse relationship between size and rental rate Comparable 3 has been adjusted upward due to its larger size. Quality Construction quality and market appeal No adjustments required.Age/Condition Actual age of the building accounting for major renovations and its general physical condition reflecting effective age Comparables 1, 3 and 4 have been adjusted upward due to their inferior age/condition.Parking Ratio Parking spaces per 1,000 SF of Gross Building Area Comparables 3 and 4 have been adjusted upward due to their inferior parking ratio.Economic Characteristics Differences in factors affecting subject operations including occupancy rate and above/below market rents No adjustments required. Page 51 12.4 Sales Comparables Adjustment Grid Subject Tesla Dealership - Renton Address 700 S Grady Way City, State Renton, WACountyKing Sale Date Sale PriceRentable Area 9,789 Parking Spaces 179Occupancy @ Sale Site Acreage 2.12Year Built Effective 1996/2015Quality/Class AveragePrice per Rentable Area Sales Status –Closed Sale 0%Closed Sale 0%Closed Sale 0%Closed Sale 0%Property Rights Fee Simple Fee Simple 0%Fee Simple 0%Fee Simple 0%Fee Simple 0%Financing Terms –Cash to Seller 0%Cash to Seller 0%Cash to Seller 0%Cash to Seller 0%Conditions of Sale –Normal 0%Normal 0%Normal 0%Normal 0%Sale Date/Mkt. Conditions 11/5/24 0% 8/23/24 0% 6/4/24 0%5/8/24 0%Cumulative Market Adjusted Price Location (MHHI)$95,088 $88,881 5% $108,029 0% $104,080 0% $105,173 0%Access/Exposure 37,000 27,306 5% 32,082 0% 45,023 0%31,534 0%Size 9,789 7,168 0% 15,291 0% 32,118 5%15,446 0% Quality Average Average 0%Average 0%Average 0%Average 0%Age/Condition 1996/2015 2001 10%2018 0%2005 5%1964 10% Parking Ratio 18.3 15.1 0%13.0 0%9.3 5%8.1 5%Econ. Characteristics 100.0%Owner-Occ.0%Owner-Occ.0%Owner-Occ.0%Owner-Occ.0% Net Property AdjustmentFinal Adjusted Price Overall Adjustment Range of Unadjusted Prices Range of Adjusted PricesMedian Adjusted Price Average Adjusted PriceIndicated Value/SF $510.60 - $670.33 $510.60 $510.60 $670.33 $617.72 $670.33 20% 2005 Average Good Average Owner-Occ. 2001 2018 $3,660,000 Comparable 1 Comparable 2 Comparable 3 Comparable 4 Auburn Car Dealership Former Northwest Motorsports Lexus of Seattle Puyallup Car Dealership 20300 Highway 99 514 River Road Lynnwood, WA 11/5/2024 King Snohomish Snohomish County Pierce 125 15,291 $10,000,000 6/4/2024 5/8/2024 Puyallup, WA Owner-Occ.Owner-Occ. 32,118 15,446 300 19642.99 6.08 6.24 108 Lynnwood, WA 8/23/2024 198 7,168 Owner-Occ. $10,250,000 17321 Highway 99 $19,840,000 Auburn, WA 1344 17th Street SE 1.88 15%15%0% $670.33$612.72 $710.38 $647.42 $647.42 $744.5320%0%15%15% $617.72 Average The Cumulative Market Adjusted Price is the subtotal adjusted price after the compounding transaction adjustments. The Net Property Adjustment is the sum of other adjustments applied before the Final Adjusted Sale Price. The Overall Adjustment is the sum of the absolute values of all adjustments. $612.72 - $744.53$690.35 $684.49$675.00 Page 52 12.5 Sales Price Per Square Foot Conclusion Prior to adjustment, the sales reflect a range of $510.60/SF - $670.33/SF. After adjustment, the range is narrowed to $612.72/SF - $744.53/SF, with an average of $684.49/SF. To arrive at an indication of value, we place primary emphasis on comparable 2 as It has the least overall adjustments. We conclude to a value of $675.00/SF. 12.6 Sales Comparison Approach Value Conclusion As Is 6/25/2025 Indicated Value/SF $675.00 Subject Rentable Area 9,789 Indicated As Is Value $6,607,575 Rounded As Is Value Conclusion $6,610,000 Page 53 13.0 VALUE CONCLUSION 13.1 Valuation Approach Reconciliation Partner considered multiple approaches to value in determining our final value conclusion. As the subject is a specialty use, the Sales Comparison Approach is given primary weight in our reconciliation. However, this conclusion is additionally supported by the Cost Approach. 13.2 Valuation Approach Reconciliation Pursuant to the analyses presented herein, and subject to the definitions, assumptions, and limiting conditions expressed in this report, our opinion of value is as follows: The value conclusions contained herein are not subject to any extraordinary assumptions or hypothetical conditions. 13.3 Marketing & Exposure Time Based on our review of current market transaction timing and discussions with market participants, our concluded Marketing & Exposure time are as follows: Valuation Approach As Is C ost Approach $6,380,000Sales Comparison Approach $6,610,000Income Capitalization Approach Not UsedReconciled Value Conclusion $6,610,000 Premise Interest Appraised Effective Date Value Conclusion Market Value As Is Fee Simple June 25, 2025 $6,610,000 Conclusion Timing Exposure Time 9 - 12 Months Marketing Time 9 - 12 Months Page 54 14.0 CERTIFICATION We certify that, to the best of our knowledge and belief: 1.The statements of fact contained in this report are true and correct. 2.The reported analyses,opinions,and conclusions are limited only by the reported assumptions and limiting conditions, and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions. 3.We have no present or prospective interest in the subject of this report,and no personal interest or bias with respect to the parties involved or property. 4.P.Ryan M cDonald,MAI, FRICS and Jimmy Ryerson have not performed any services,as an appraiser or in any other capacity,regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. 5.Our engagement in this assignment was neither contingent upon developing or reporting predetermined results, nor is our compensation for completing this assignment is contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client,the amount of the value opinion, the attainment of a stipulated result,or the occurrence of a subsequent event directly related to the intended use of this appraisal. 6.Our analyses,opinions,and conclusions were developed,and this report has been prepared,in conformity with the Uniform Standards of Professional Appraisal Practice as well as applicable state appraisal regulations. 7.The reported analyses,opinions,and conclusions were developed,and this report has been prepared,inconformity with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute.8.The use of this report is subject to the requirements of the Appraisal Institute relating to review by its dulyauthorized representatives. 9.Jimmy Ryerson has made a personal inspection of the property that is the subject of this report.P.RyanMcDonald, MAI, FRICS has not personally inspected the subject.10.Significant real property assistance was provided by Andrew Thompson,who has not signed this certification,including conducting research on the subject and transactions involving comparable properties,performingappraisal analyses, and assisting in report writing.11.We have ex perience in appraising properties similar to the subject and are in compliance with the CompetencyRule of USPAP. 12.As of the date of this report,P.Ryan McDonald,MAI, FRICS has completed the continuing education programfor Designated Members of the Appraisal Institute. P. Ryan McDonald, MAI, FRICS Jimmy Ryerson Managing Director Vice President Certified General Appraiser Certified General Appraiser WA Certificate # 24029170 WA Certificate # 1102573 +1 (314) 226-1219 +1 (425) 648-1316 rmcdonald@partnerval.com jryerson@partnerval.com A New Vision for Valuation. 15.0 ASSUMPTIONS & LIMITING CONDITIONS A. VALUATION SERVICE PROVIDER. Partner Valuation Advisors, LLC ("PVA") is a real estate appraisal and advisory firm with expertise in valuation services. PVA is a separate legal entity possessing some common ownership and management services with Partner Assessment Corporation, Inc. ("PAC"). PVA are not experts in engineering, environmental assessments and conditions (including but not limited soil and subsoil matters), zoning/regulatory compliance, seismic, survey, and/or title matters, and the purpose of this engagement does not include an expectation from the Client that any or all of such services have been or will be provided without the need for a separate engagement of such services from an outside entity which will be subject to a separate limitation of liability. If any such services are separately provided and referenced in our report, and if such services are found to be in error which causes a material impact on our value conclusion, PVA reserves the right to amend our value opinion accordingly. If any environmental impact statement is required by law, the report assumes that such statement will be favorable and will be approved by the appropriate regulatory bodies. B. FORECAST UNCERTAINTY. All work product we deliver to you (collectively called "report") represents an opinion of value, based on historical information and forecasts of property and market performance and conditions. Actual results may vary from those forecast in the report. ¬ C. RELIANCE PARTY. The report is confidential to the party to whom it is addressed and those other intended users specified in the report for the specific purpose to which it refers. Use of the report for any other purpose or use by any party not identified as an intended user of the report without our prior written consent is prohibited, and we accept no responsibility for any use of the report in violation of the terms of this Agreement. Neither the whole report, nor any part, nor reference thereto, may be referenced or published in any manner without our prior written approval. D. HAZARDOUS MATERIAL EXCLUSION. Unless specifically noted, in preparing the Appraisal Report, PVA will not be considering the possible existence of asbestos, PCB transformers, or other toxic, hazardous, or contaminated substances and/or underground storage tanks (collectively, “Hazardous Material) on or affecting the Property, or the cost of encapsulation or removal thereof. Further, Client represents that there is no major or significant deferred maintenance of the Property that would require the expertise of a professional cost estimator or contractor. If such repairs are needed, the estimates are to be prepared by others, at Client’s discretion and direction, and are not covered as part of the Appraisal fee E. TAX MATTERS. In the event Client intends to use the Appraisal Report in connection with a tax matter, Client acknowledges that PVA provides no warranty, representation or prediction as to the outcome of such tax matter. Client understands and acknowledges that any relevant taxing authority (whether the Internal Revenue Service or any other federal, state or local taxing authority) may disagree with or reject the Appraisal Report or otherwise disagree with Client’s tax position, and further understands and acknowledges that the taxing authority may seek to collect additional taxes, interest, penalties or fees from Client beyond what may be suggested by the Appraisal Report. Client agrees that PVA shall have no responsibility or liability to Client or any other party for such taxes, interest, penalties or fees and that Client will not seek damages or other compensation from PVA relating to any such taxes, interest, penalties or fees imposed on Client, or for any attorneys’ fees, costs or other expenses relating to Client’s tax matters. F. INFORMATION RELIANCE. The appraisal process requires our evaluation of information from a wide variety of sources including the Client, its agents, and other sources. We have assumed that all information furnished by others is correct and complete, up to date and can be relied upon, but no warranty is given for its accuracy. We do not accept responsibility for erroneous information provided by others. We assume that no information that has material effect on our appraisal has been withheld. We are not liable for any deficiency in the report arising from the inaccuracy or insufficiency of such information, documents and assumptions. G. MARKETABLE TITLE. We assume each property has a good and marketable title, including but not limited to, no encumbrances, restrictions, easements, or other adverse title conditions, which would have a material effect on the value of the interest under consideration. There is no material litigation pending involving the property. H. REGULATORY COMPLIANCE. We assume that the property possesses and/or is compliance with all required licenses, certificates of occupancy, consents, environmental regulations, and other legislative or administrative requirements from any local, state, or national government or private entity or organization, or possession or compliance can be obtained or renewed for any use on which the opinion of value contained in this report is based. I. FLOOD RISK. We may have reviewed available flood maps and may have noted in the report whether the property is generally located within or out of an identified Special Flood Hazard Area. However, we are not qualified to detect such areas and therefore do not guarantee such determinations. The presence of flood plain areas and/or wetlands may affect the value of the property. Any opinion of value we include in our report assumes that the floodplain and/or wetlands interpretations are accurate. J ADDITIONAL SERVICES. Client agrees that if PVA is subpoenaed or ordered to give testimony, produce documents or information, or otherwise required or requested by Client or a third party to participate in meetings, phone calls, conferences, litigation or other legal proceedings (including preparation for such proceedings) because of, connected with or in any way pertaining to this engagement, the Appraisal Report, the Appraiser’s or PVA’s expertise, or the Property, Client shall pay PVA’s additional costs and expenses, including , but not limited to PVA’s attorneys’ fees, and additional time incurred by PVA based on PVA’s then-prevailing hourly rates and related fees. Such charges include and pertain to, but are not limited to, time spent in preparing for and providing court room testimony, depositions, travel time, mileage and related travel expenses, waiting time, document review and production, and preparation time (excluding preparation of the Appraisal Report), meeting participation, and PVA’s other related commitment of time and expertise. Hourly charges and other fees for such participation will be provided upon request. In the event Client requests additional appraisal services beyond the scope and purpose stated in the Agreement, Client agrees to pay additional fees for such services and to reimburse related expenses, whether or not the completed report has been delivered to Client at the time of such request. K. CONSTRUCTION RISK. Any proposed improvements, on or off-site, as well as any alterations or repairs considered will be completed in a workmanlike manner according to standard practices. L. PRUDENT OPERATION. The property and its use, management, and operation are in full compliance with all applicable federal, state, and local regulations, laws, and restrictions, including without limitation environmental laws, seismic hazards, flight patterns, decibel levels/noise envelopes, fire hazards, hillside ordinances, density, allowable uses, building codes, permits, and licenses. M. DATA VISUALS. The maps, plats, sketches, graphs, photographs, and exhibits included in this Report are for illustration purposes only and shall be utilized only to assist in visualizing matters discussed in the Report. N. VALUE ALLOCATIONS. Any allocations of the total value estimate in the Report between land and improvements apply only to the existing use of the subject property. The allocations of values for each of the land and improvements are not intended to be used with any other property or appraisal are not valid for any such use. O. FURNITURE, FIXTURES, & EQUIPMENT. All furnishings, equipment, and business operations have been disregarded with only real property being considered in the Report, except as otherwise expressly stated and typically considered part of real property. The allocations of the total value estimate in the Report between land and improvements apply only to the existing use of the subject property. The allocations of values for each of the land and improvements are not intended to be used with any other property or appraisal are not valid for any such use. P. PROPERTY BOUNDARIES & ENCHROACHMENTS. We did not conduct a formal survey of the property and assume no responsibility for any survey matters. The Client has supplied the spatial data, including sketches and/or surveys included in the report, and we assume that data is correct up to date and can be relied upon. Q. TENANT CREDIT RISK. We have not made any investigation of the financial standing of actual or prospective tenants unless specifically noted in the report. Where properties are valued with the benefit of leasing, we assume, unless are informed otherwise, that the tenants are capable of meeting their financial obligations under their leases, all rent and other amounts payable under the lease have been paid when due, and that there are no undisclosed breaches of the leases. R. RELIANCE. No party shall be allowed to use or rely on any report(s) or information generated in the completion of this project until payment in full is made to PVA for any outstanding invoices related to the Services rendered. Client understands that Services governed by this Agreement are strictly for their sole use and benefit. The parties expressly agree that no third party, including, but not limited to, any heirs, devisees, representatives, successors, assigns, affiliates, and subsidiaries of the parties or any partnership, corporation or other entity controlled by the parties or which control the parties, may rely on or raise any claim relating to the Services or this Agreement. Client shall not disseminate, distribute, make available or otherwise provide our Appraisal Report prepared hereunder to any third party (including without limitation, incorporating or referencing the Appraisal Report, in whole or in part, in any offering or other material intended for review by other parties) except to (i) any third party expressly acknowledged in a signed writing by PVA as an “Intended User” of the Appraisal Report provided that either PVA has received an acceptable release from such third party with respect to such Appraisal Report or Client provides acceptable indemnity protections to PVA against any claims resulting from the distribution of the Appraisal Report to such third party, (ii) any third party service provider (including rating agencies and auditors) using the Appraisal Report in the course of providing services for the sole benefit of an Intended User, or (iii) as required by statute, government regulation, legal process, or judicial decree. In the event PVA consents, in writing, to Client incorporating or referencing the Appraisal Report in any offering or other materials intended for review by other parties, Client shall not distribute, file, or otherwise make such materials available to any such parties unless and until Client has provided PVA with complete copies of such materials and PVA has approved all such materials in writing. Client shall not modify any such materials once approved by the PVA. In the absence of satisfying the conditions of this paragraph H with respect to a party who is not designated as an Intended User, in no event shall the receipt of an Appraisal Report by such party extend any right to the party to use and rely on such report, and PVA shall have no liability for such unauthorized use and reliance on any Appraisal Report. Furthermore, the conclusions and any permitted reliance on and use of the Appraisal Report shall be subject to the assumptions, limitations, and qualifying statements contained in the report. APPENDIX A: QUALIFICATIONS www.PARTNERval.com P. Ryan McDonald, MAI, FRICS Managing Director Experience Summary Ryan McDonald serves as the Managing Director of Partner Valuation Advisors (PVA) in St. Louis, Missouri. Ryan oversees a team of local and regional appraisers in the Midwest and leads PVA’s national self-storage practice. With over 20 years of experience in the commercial appraisal industry, Ryan has a broad range of expertise in the valuation of institutional commercial real estate including office, retail, industrial, multi-housing, self-storage, seniors housing, hospitality, mixed-use, residential subdivisions, renewable energy properties, and going concern valuations of complex assets. Ryan manages various national client accounts and is regularly involved in national portfolio originations and management. Ryan has deep real estate valuation ties with major financial institutions, pension funds, REITs, insurance companies, and hedge funds. Ryan has also provided expert testimony in both litigation and state tax appeal cases. Ryan joined Partner Valuation Advisors in 2023 and was previously the Managing Director of JLL Valuation Advisory’s St. Louis office for over six years from 2016-2023, leading a team of appraisers throughout the Midwest as well as JLL’s national self-storage practice. Ryan was also one of the founders of JLL’s Valuation Advisory platform when it launched in 2016. Ryan has been providing commercial real estate valuations since 2003 and prior to joining JLL, he was the Senior Managing Director of the St. Louis office of Integra Realty Resources (IRR). Ryan’s career with IRR began in Kansas City in 2003, he worked in Chicago from 2004 to 2011, and in 2011 he returned to his hometown of St. Louis to build and manage IRR’s St. Louis office, which he opened 2008. Ryan and his team have provided valuation and consulting services on more than 2,500 assets in all 50 states over the past five years. Highlights • 20+ years of Commercial Real Estate Appraisal Experience • CORE 4 Property Sector Expert and National Self-Storage Practice Leader • Holds Appraisal Licenses in 35 states Education & Affiliations • University of Notre Dame, BBA in Finance (2003) • Appraisal Institute, Designated Member (MAI) since 2011 • Royal Institute of Chartered Surveyors, Fellow (FRICS) since 2012 • Past Board of Director: St. Louis Chapter Appraisal Institute • Alumni Board President: St. Louis Priory School Appraisal Licenses Alabama Arkansas Arizona California Colorado Connecticut Florida Georgia Illinois Indiana Iowa Kansas Kentucky Massachusetts Michigan Minnesota Louisiana Maryland Mississippi Missouri Nevada New Jersey New York North Carolina Ohio Oklahoma Oregon Pennsylvania South Carolina Tennessee Texas Utah Virginia Wisconsin Washington Contact: rmcdonald@partnerval.com State ofWashington DEPARTMENT OF LICENSING BUSINESS AND PROFESSIONS DIVISION APPRAISER PROGRAM PO Box 9021 Olympia, WA 98507-9021 STATE OF WASHINGTON (R/4/23) DEPARTMENT OF LICENSING - BUSINESS AND PROFESSIONS DIVISION THIS CERTIFIES THE PERSON OR BUSINESS NAMED BELOW IS AUTHORIZED AS A PETER RYAN MCDONALD 8000 MARYLAND AVE #STE 1170 SAINT LOUIS MO 63105-3910 CERTIFIED GENERAL REAL ESTATE APPRAISER PETER RYAN MCDONALD 24029170 10/21/2024 10/19/2026 License Number Issue Date Expiration Date www.PARTNERval.com Jimmy Ryerson Vice President Experience Summary Jimmy Ryerson serves as a Vice President at Partner Valuation Advisors. Mr. Ryerson has over ten years of commercial real estate appraisal experience. Throughout Mr. Ryerson’s appraisal career, he has appraised industrial, office, retail, and multifamily. Mr. Ryerson is also proficient in Discounted Cash Flow analysis, including Argus Enterprise. Over the past several years, Mr. Ryerson has specialized in self-storage assets. Mr. Ryerson has significant experience in appraising self -storage facilities across the United States, which includes large national portfolios for various financial institutions, REITs, insurance companies, and hedge funds. Mr. Ryerson joined Partner Valuation Advisors in 2024 and was previously an Associate Director for JLL Valuation Advisory’s Seattle office. Prior to that, Mr. Ryerson began his appraisal career in 2014 at a boutique shop in Seattle where he completed appraisals, feasibility analysis, and supply and demand market studies. Further experienced was gained at Integra Realty Resources (2017 -2020) and Colliers International (2020- 2022). Highlights • 10+ years of Commercial Real Estate Appraisal Experience • Self-Storage specialist • Appraised 1,000+ Assets Education Central Washington University (2013) – Bachelor of Science in Information Technology with a minor in Business Administration Appraisal Licenses Washington Oregon Contact: jryerson@partnerval.com State of Washington DEPARTMENT OF LICENSING BUSINESS AND PROFESSIONS DIVISION APPRAISER PROGRAM PO Box 9021 Olympia, WA 98507-9021 STATE OF WASHINGTON (R/4/23) DEPARTMENT OF LICENSING - BUSINESS AND PROFESSIONS DIVISION THIS CERTIFIES THE PERSON OR BUSINESS NAMED BELOW IS AUTHORIZED AS A JIMMY RYERSON 14838 6TH AVENUE NE SHORELINE WA 98155 CERTIFIED GENERAL REAL ESTATE APPRAISER JIMMY RYERSON 1102573 05/10/2019 03/16/2027 License Number Issue Date Expiration Date APPENDIX B: DEFINITIONS The source of the following definitions is the Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015), unless otherwise noted. Amenity A tangible or intangible benefit of real property that enhances its attractiveness or increases the satisfaction of the user. Natural amenities may include a pleasant location near water or a scenic view of the surrounding area; man-made amenities include swimming pools, tennis courts, community buildings, and other recreational facilities. As Is Market Value The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date. Class of Apartment Property For the purposes of comparison, apartment properties are grouped into three classes. These classes represent a subjective quality rating of buildings, which indicates the competitive ability of each building to attract similar types of tenants. Combinations of factors such as rent, building finishes, system standards and efficiency, building amenities, location/accessibility, and market perception are used as relative measures. Class A apartment properties are the most prestigious properties competing for the premier apartment tenants, with rents above average for the area. Buildings have high-quality standard finishes, architectural appeal, state-of-the-art systems, exceptional accessibility, and a definite market presence. Class B apartment properties compete for a wide range of users, with rents in the average range for the area. Class B buildings do not compete with Class A buildings at the same price. Building finishes are fair to good for the area, and systems are adequate. Class C apartment properties compete for tenants requiring functional space at rents below the average for the area. Class C buildings are generally older and are lower in quality and condition. (Adapted from “Class of Office Building” in The Dictionary of Real Estate Appraisal.) Date of Value The date to which the appraiser’s analyses, opinions, and conclusions apply; also referred to as the effective date of value. Deferred Maintenance Needed repairs or replacement of items that should have taken place during the course of normal maintenance. Depreciation A loss in property value from any cause; the difference between the cost of an improvement on the effective date of the appraisal and the market value of the improvement on the same date. Discounted Cash Flow (DCF) Analysis The procedure in which a discount rate is applied to a set of projected income streams and a reversion. The analyst specifies the quantity, variability, timing, and duration of the income streams and the quantity and timing of the reversion, and discounts each to its present value at a specified yield rate. Disposition Value The most probable price that a specified interest in real property should bring under the following conditions: 1. Consummation of a sale within a future exposure time specified by the client. 2. The property is subjected to market conditions prevailing as of the date of valuation. 3. Both the buyer and seller are acting prudently and knowledgeably. 4. The seller is under compulsion to sell. 5. The buyer is typically motivated. 6. Both parties are acting in what they consider to be their best interests. 7. An adequate marketing effort will be made during the exposure time specified by the client. 8. Payment will be made in cash in U.S. dollars or in terms of financial arrangements comparable thereto. 9. The price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. 10. This definition can also be modified to provide for valuation with specified financing terms. Effective Date of Appraisal The date to which the appraiser’s analyses, opinions, and conclusions apply; also referred to as date of value. Entrepreneurial Profit A market-derived figure that represents the amount an entrepreneur receives for his or her contribution to a project and risk; the difference between the total cost of a property (cost of development) and its market value (property value after completion), which represents the entrepreneur’s compensation for the risk and expertise associated with development. An entrepreneur is motivated by the prospect of future value enhancement (i.e., the entrepreneurial incentive). An entrepreneur who successfully creates value through new development, expansion, renovation, or an innovative change of use is rewarded by entrepreneurial profit. Entrepreneurs may also fail and suffer losses. In economics, the actual return on successful management practices, often identified with coordination, the fourth factor of production following land, labor, and capital; also called entrepreneurial return or entrepreneurial reward. Excess Land Excess Land: Land that is not needed to serve or support the existing improvement. The highest and best use of the excess land may or may not be the same as the highest and best use of the improved parcel. Excess land may have the potential to be sold separately and is valued independently. Exposure Time An opinion, based on supporting market data, of the length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal. Extraordinary Assumption An assignment-specific assumption as of the effective date regarding uncertain information used in the analysis which, if found to be false, could alter the appraiser’s opinions of conclusions. Fee Simple Estate Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. Floor Area Ratio (FAR) The relationship between the above-ground floor area of a building, as described by the building code, and the area of the plot on which it stands; in planning and zoning, often expressed as a decimal, e.g., a ratio of 2.0 indicates that the permissible floor area of a building is twice the total land area. Garden/Low Rise Apartments A multifamily development of two- or three-story, walk-up structures built in a garden-like setting; customarily a suburban or rural-urban fringe development. (Source: Appraisal Institute) Gross Building Area (GBA) Total floor area of a building, excluding unenclosed areas, measured from the exterior of the walls of the above-grade area. This includes mezzanines and basements if and when typically included in the region. Highest and Best Use The reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. Alternatively, the probable use of land or improved property – specific with respect to the user and timing of the use – that is adequately supported and results in the highest present value. Hypothetical Condition A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results but is used for the purpose of analysis. Lease A contract in which rights to use and occupy land or structures are transferred by the owner to another for a specified period of time in return for a specified rent. Leased Fee Interest A freehold (ownership interest) where the possessory interest has been granted to another party by creation of a contractual landlord-tenant relationship (i.e., a lease). Leasehold Interest The tenant’s possessory interest created by a lease. Liquidation Value The most probable price that a specified interest in real property should bring under the following conditions: 1. Consummation of a sale within a short time period. 2. The property is subjected to market conditions prevailing as of the date of valuation. 3. Both the buyer and seller are acting prudently and knowledgeably. 4. The seller is under extreme compulsion to sell. 5. The buyer is typically motivated. 6. Both parties are acting in what they consider to be their best interests. 7. A normal marketing effort is not possible due to the brief exposure time. 8. Payment will be made in cash in U.S. dollars, or in terms of financial arrangements comparable thereto. 9. The price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. This definition can also be modified to provide for valuation with specified financing terms. Marketing Time An opinion of the amount of time it might take to sell a real or personal property interest at the concluded market value level during the period immediately after the effective date of an appraisal. Marketing time differs from exposure time, which is always presumed to precede the effective date of an appraisal. Market Rent The most probable rent that a property should bring in a competitive and open market reflecting all conditions and restrictions of the lease agreement, including permitted uses, use restrictions, expense obligations, term, concessions, renewal and purchase options, and tenant improvements. Market Value The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. Buyer and seller are typically motivated; 2. Both parties are well informed or well advised, and acting in what they consider their own best interests; 3. A reasonable time is allowed for exposure in the open market; 4. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 5. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. (Source: Code of Federal Regulations, Title 12, Chapter I, Part 34.42[g]; also Interagency Appraisal and Evaluation Guidelines, Federal Register, 75 FR 77449, December 10, 2010, page 77472) Mid/High-Rise Apartment Building A multifamily building with four or more stories, typically elevator-served. (Source: Appraisal Institute) Multifamily Property Type Residential structure containing five or more dwelling units with common areas and facilities. (Source: Appraisal Institute Commercial Data Standards and Glossary of Terms, Chicago, Illinois, 2004 [Appraisal Institute]) Prospective Opinion of Value A value opinion effective as of a specified future date. The term does not define a type of value. Instead, it identifies a value opinion as being effective at some specific future date. An opinion of value as of a prospective date is frequently sought in connection with projects that are proposed, under construction, or under conversion to a new use, or those that have not yet achieved sellout or a stabilized level of long-term occupancy. Rentable Floor Area (RFA) Rentable area shall be computed by measuring inside finish of permanent outer building walls or from the glass line where at least 50% of the outer building wall is glass. Rentable area shall also include all area within outside walls less stairs, elevator shafts, flues, pipe shafts, vertical ducts, air conditioning rooms, fan rooms, janitor closets, electrical closets, balconies and such other rooms not actually available to the tenant for his furnishings and personnel and their enclosing walls. No deductions shall be made for columns and projections unnecessary to the building. (Source: Income/Expense Analysis, 2013 Edition – Conventional Apartments, Institute of Real Estate Management, Chicago, Illinois) Replacement Cost The estimated cost to construct, at current prices as of the effective appraisal date, a substitute for the building being appraised, using modern materials and current standards, design and layout. Room Count A unit of comparison used primarily in residential appraisal. No national standard exists on what constitutes a room. The generally accepted method is to consider as separate rooms only those rooms that are effectively divided and to exclude bathrooms. Stabilized Income Income at that point in time when abnormalities in supply and demand or any additional transitory conditions cease to exist and the existing conditions are those expected to continue over the economic life of the property; projected income that is subject to change, but has been adjusted to reflect an equivalent, stable annual income. Surplus Land Surplus Land: Land that is not currently needed to support the existing improvement but cannot be separated from the property and sold off. Surplus land does not have an independent highest and best use and may or may not contribute value to the improved parcel. v1.202|06.29.2025 APPENDIX C: FINANCIALS AND PROPERTY INFORMATION This map/plat is being furnished as an aid in locating the herein described Land in relation to adjoining streets, natural boundaries and other land, and is not a survey of the land depicted. Except to the extent a policy of title insurance is expressly modified by endorsement, if any, the Company does not insure dimensions, distances, location of easements, acreage or other matters shown thereon. Chicago Title Commitment for Title Insurance File No.: 0292119-ETU Title Officer: Eastside Title Unit Welcome to the new titleLOOK®! titleLOOK upgrades the traditional title report experience from a static report with large zip files of supporting documents to a real-time interactive title report. With titleLOOK, you'll enjoy: •an easy-to-use summary page of your report findings •color-coded requirements and exceptions so you can focus on what is important •hyperlinks directly into the documents referenced on your report •a transparent and convenient title report experience When you click on the above button/link to access your titleLOOK report, you will be taken to inHere, our platform designed to transform the experience of buying or selling real estate from the moment a transaction is started all the way through closing. inHere provides a safe and convenient method of delivering documents and information about your real estate transaction. SUBDIVISION Guarantee/Certificate Number: Issued By: 0292119-ETU Subdivision Guarantee/Certificate Printed: 05.15.25 @ 06:03 AM Page 1 WA-CT-FNSE-02150.622475-SPS-1-25-0292119-ETU CHICAGO TITLE INSURANCE COMPANY a corporation, herein called the Company GUARANTEES , and each successor in ownership of the indebtedness secured by the insured mortgage, except a successor who is an obligor under the provisions of Section 12 (c) of the Conditions herein called the Assured, against actual loss not exceeding the liability amount stated in Schedule A which the Assured shall sustain by reason of any incorrectness in the assurances set forth in Schedule A. LIABILITY EXCLUSIONS AND LIMITATIONS 1.No guarantee is given nor liability assumed with respect to the identity of any party named or referred to in Schedule A or with respect to the validity, legal effect or priority of any matter shown therein. 2.The Company’s liability hereunder shall be limited to the amount of actual loss sustained by the Assured because of reliance upon the assurance herein set forth, but in no event shall the Company’s liability exceed the liability amount set forth in Schedule A. Please note carefully the liability exclusions and limitations and the specific assurances afforded by this guarantee. If you wish additional liability, or assurances other than as contained herein, please contact the Company for further information as to the availability and cost. Chicago Title Company of Washington 11900 NE 1st St., Suite 110 Bellevue, WA 98005 Chicago Title Insurance Company By: Countersigned By: J.L. Jackson Authorized Officer or Agent Michael J. Nolan, President Attest: Marjorie Nemzura, Secretary Subdivision Guarantee/Certificate Printed: 05.15.25 @ 06:03 AM Page 2 WA-CT-FNSE-02150.622475-SPS-1-25-0292119-ETU CHICAGO TITLE INSURANCE COMPANY GUARANTEE/CERTIFICATE NO. 0292119-ETU ISSUING OFFICE: Title Officer: Eastside Title Unit Chicago Title Company of Washington 11900 NE 1st St., Suite 110 Bellevue, WA 98005 Main Phone: (425)646-9883 Email: CTIBellevueETU@ctt.com SCHEDULE A Liability Premium Tax $10,500.00 $350.00 $35.70 Effective Date: May 6, 2025 at 08:00 AM The assurances referred to on the face page are: That, according to those public records which, under the recording laws, impart constructive notice of matter relative to the following described property: SEE EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF Title to said real property is vested in: 700 Grady, LLC, a Washington limited liability company, which acquired title as 700 Grady LLC subject to the matters shown below under Exceptions, which Exceptions are not necessarily shown in the order of their priority. END OF SCHEDULE A EXHIBIT "A" Legal Description Subdivision Guarantee/Certificate Printed: 05.15.25 @ 06:03 AM Page 3 WA-CT-FNSE-02150.622475-SPS-1-25-0292119-ETU For APN/Parcel ID(s):192305-9096 LOTS 2, 3 AND 4, CITY OF RENTON SHORT PLAT NO. LUA-93-046-SHPL, RECORDED UNDER RECORDING NO. 9309219015, SAID SHORT PLAT BEING A PORTION OF THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SECTION 19, TOWNSHIP 23 NORTH, RANGE 5 EAST, WILLAMETTE MERIDIAN, IN KING COUNTY, WASHINGTON. (ALSO KNOWN AS CITY OF RENTON LOT LINE ADJUSTMENT NO. LUA-03-074-LLA, RECORDED UNDER RECORDING NO. 20030930900010, IN KING COUNTY, WASHINGTON.) SITUATE IN THE COUNTY OF KING, STATE OF WASHINGTON. CHICAGO TITLE INSURANCE COMPANY GUARANTEE/CERTIFICATE NO. 0292119-ETU SCHEDULE B Subdivision Guarantee/Certificate Printed: 05.15.25 @ 06:03 AM Page 4 WA-CT-FNSE-02150.622475-SPS-1-25-0292119-ETU CHICAGO TITLE INSURANCE COMPANY GUARANTEE/CERTIFICATE NO. 0292119-ETU SCHEDULE B (continued) Subdivision Guarantee/Certificate Printed: 05.15.25 @ 06:03 AM Page 5 WA-CT-FNSE-02150.622475-SPS-1-25-0292119-ETU SPECIAL EXCEPTIONS 1.Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to:Puget Sound Power & Light Company, a Washington corporation Purpose:underground electric transmission and distribution Recording Date:December 31, 1984 Recording No.:8412311133 Affects:the description contained therein is not sufficient to determine its exact location within the property herein described 2.Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to:Puget Sound Power & Light Company, a Washington corporation Purpose:electric transmission and/ or distribution system Recording Date:December 31, 1984 Recording No.:8412311134 Affects:as described in said instrument 3.Covenants, conditions, restrictions, recitals, reservations, easements, easement provisions, encroachments, dedications, building setback lines, notes, statements, and other matters, if any, but omitting any covenants or restrictions, if any, including but not limited to those based upon race, color, religion, sex, sexual orientation, familial status, marital status, disability, handicap, national origin, ancestry, or source of income, as set forth in applicable state or federal laws, except to the extent that said covenant or restriction is permitted by applicable law, as set forth on City of Renton Short Plat No. LUA-93-046-SHPL:: Recording No:9309219015 4.Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to:Atlantic Richfield Company, a Delaware corporation Purpose:ingress, egress, regress, access and utilities Recording Date:October 26, 1993 Recording No.:9310261739 Affects:portion of Lot 2 as described in document 5.Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to:City of Renton, a municipal corporation Purpose:constructing, reconstructing, installing, repairing and maintaining a public right of way Recording Date:September 6, 1996 Recording No.:9609061631 Affects:The South 38 feet of the West 20 feet of Lot 4 6.Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to:Washington Natural Gas Company, a Washington corporation Purpose:gas pipelines Recording Date:October 22, 1996 Recording No.:9610220234 Affects:portion of said premises and other premises CHICAGO TITLE INSURANCE COMPANY GUARANTEE/CERTIFICATE NO. 0292119-ETU SCHEDULE B (continued) Subdivision Guarantee/Certificate Printed: 05.15.25 @ 06:03 AM Page 6 WA-CT-FNSE-02150.622475-SPS-1-25-0292119-ETU 7.Covenants, conditions, restrictions, recitals, reservations, easements, easement provisions, encroachments, dedications, building setback lines, notes, statements, and other matters, if any, but omitting any covenants or restrictions, if any, including but not limited to those based upon race, color, religion, sex, sexual orientation, familial status, marital status, disability, handicap, national origin, ancestry, or source of income, as set forth in applicable state or federal laws, except to the extent that said covenant or restriction is permitted by applicable law, as set forth on City of Renton Lot Line Adjustment No. LUA-03-074-LLA: Recording No:20030930900010 8.Any rights, interests, or claims which may exist or arise by reason of the following matters disclosed by survey, Prepared by.:Partner Engineering and Science, Inc. Recording No.:19-236890-18 Matters shown:Fences along Northerly and Southerly lines do not conform to boundary lines 9.General and special taxes and charges, payable February 15, delinquent if first half unpaid on May 1, second half delinquent if unpaid on November 1 of the tax year (amounts do not include interest and penalties): Year:2025 Tax Account No.:192305-9096 Levy Code:2100 Assessed Value-Land: $4,086,300.00 Assessed Value-Improvements:$431,200.00 General and Special Taxes: Billed:$46,604.85 Paid:$23,203.43 Unpaid:$23,203.42 10.City, county or local improvement district assessments, if any. 11.A deed of trust to secure an indebtedness in the amount shown below, Amount:$3,012,550.00 Dated:March 28, 2019 Trustor/Grantor:Renton Property Holding, LLC, a Washington limited liability company Trustee:Chicago Title Company of Washington Beneficiary:Hyundai Capital America, a California corporation Recording Date:March 28, 2019 Recording No.:20190328001222 An agreement to modify the terms and provisions of said deed of trust as therein provided Executed by:Renton Property Holding, LLC, a Washington limited liability company; and Hyundai Capital America, a California corporation Recording Date:September 27, 2019 Recording No.:20190927000854 CHICAGO TITLE INSURANCE COMPANY GUARANTEE/CERTIFICATE NO. 0292119-ETU SCHEDULE B (continued) Subdivision Guarantee/Certificate Printed: 05.15.25 @ 06:03 AM Page 7 WA-CT-FNSE-02150.622475-SPS-1-25-0292119-ETU 12.An unnrecorded lease with certain, terms, covenants, conditions and provisions set forth therein as disclosed by the document: Entitled:Subordination, Non-Disturbance and Attornment Agreement Lessor:Renton Property Holding, LLC, a Washington limited liability company Lesseee:509 TIME, Inc., a Washington corporation Recording Date:March 28, 2019 Recording No.:20190328001223 An agreement recorded March 28, 2019 at Recording No.: 20190328001223 which states that this instrument was subordinated to the document or interest described in the instrument Recording Date:March 18, 2019 Recording No.:20190328001222 13.Subordination, Nondisturbance and Attornment Agreement, and the terms and conditions thereof: Lender: Hyndai Capital America, a California corporation Tenant:509 TIME, Inc., a Washington corporation Landlord:Renton Property Holding, LLC, a Washington limited liability company Recording Date: March 28, 019 Recording No.: 20190328001223 14.A financing statement as follows: Debtor:Renton Property Holding, LLC Secured Party:Hyundai Capital America Recording Date:March 28, 2019 Recording No.:20190328001329 A change to the above financing statement was filed Nature of Change:change Recording Date:November 30, 2023 Recording No.:20231130000568 CHICAGO TITLE INSURANCE COMPANY GUARANTEE/CERTIFICATE NO. 0292119-ETU SCHEDULE B (continued) Subdivision Guarantee/Certificate Printed: 05.15.25 @ 06:03 AM Page 8 WA-CT-FNSE-02150.622475-SPS-1-25-0292119-ETU 15.Amended and Restated Cross-Default Cross-Collateralization Agreement and the terms and conditions thereof: Executed by:AMP Holding, Inc., a California corporation; Glendale K, Inc., a California corporation; Car Pros Automotive Group, Inc., a Washington corporation; Renton K, Inc., a Washington corporation; Renton H, Inc., a Washington corporation; SBCPV, Inc., a California corporation; Recreation Road, LLC, a Calfornia limited liability; KR Tacoma, LLC, a Washington limited liability company; RKMN Investments, LLC, a Washington limited liability company; Renton Property Holding, LLC, a Washington limited liability company; Camino Real Holding, LLC, a California limited liability company; MV Holding LLC, a California limited liability company; CPAG WA Inc., a Washington corporation; and Hyundai Capital America, a California corporation; Recording Date:March 29, 2019 Recording No.:20190329001781 Affects:includes other property An "Execution Version" of said agreement was recorded September 27, 2019 under recording no. 20190927000851. A "Seventh Amended and Restated Cross-Default and Cross-Collateralization Agreement" was recorded February 7, 2025 under Recording No.: 20250207000753. 16.A financing statement as follows: Debtor:700 Grady, LLC Secured Party:Hyundai Capital America Recording Date:October 27, 2022 Recording No.:20221027000315 17.Any unrecorded leaseholds, right of vendors and holders of security interests on personal property installed upon the Land and rights of tenants to remove trade fixtures at the expiration of the terms. Note: FOR INFORMATIONAL PURPOSES ONLY: The following may be used as an abbreviated legal description on the documents to be recorded, per Amended RCW 65.04.045. Said abbreviated legal description is not a substitute for a complete legal description within the body of the document: Lts 2-4, City of Renton Short Plat NO. LUA-93-046-SHPL, 9309219015; aka City of Renton Lot Line Adjustment No. LUA-03-074-LLA, 20030930900010 Tax Account No.: 192305-9096 Note: The Public Records indicate that the address of the improvement located on said Land is as follows: 700 S GRADY WAY Renton, WA 98055 END OF SCHEDULE B CHICAGO TITLE INSURANCE COMPANY GUARANTEE/CERTIFICATE NO. 0292119-ETU SCHEDULE B Subdivision Guarantee/Certificate Printed: 05.15.25 @ 06:03 AM Page 9 WA-CT-FNSE-02150.622475-SPS-1-25-0292119-ETU This map/plat is being furnished as an aid in locating the herein described Land in relation to adjoining streets, natural boundaries and other land, and is not a survey of the land depicted. Except to the extent a policy of title insurance is expressly modified by endorsement, if any, the Company does not insure dimensions, distances, location of easements, acreage or other matters shown thereon. APPENDIX D: COMPARABLES Land Sale Comparables Land Sale Comparable 1 Sale Information Sale Comments County:KingProperty Type:Land Property Name:Auburn Way Redevelopment SiteAddress:2712 Auburn Way N City, State Zip:Auburn, WA 98002 Land Acres:1.42Land SF:62,018Usable Acres:1.4 Property Subtype:CommercialTax ID(s):000100-0038Zoning:Heavy Commercial Flood Zone:X Topography:LevelShape:Roughly rectangular Land Acres:1.42Sale Date:6/13/2025 Price Per Acre:$1,416,551Status:Closed Sale Grantor:Rottle LLC Grantee:Rag Auburn Way 2 LLC Sale Price:$2,016,800 Property Rights:Fee SimpleFinancing:Cash to Seller Conditions of Sale:Normal Traffic Count:12,938 This is the sale of a former car dealership for redevelopment. The property was on the market for 94 days and sold for the asking price. We estimate demolition costs to be $10 per square foot for the improvements using MVS, which equates to an effective purchase price of $2,016,800, or $32.52 per square of land area. Land Sale Comparable 2 Sale Information Sale CommentsThis is the sale of vacant land for development of a hotel. The property is located adjacent to a Boeing office building and a TopGolf. The hotel will feature 126 bedrooms and four stories. Address:751 Park Avenue N City, State Zip:Renton, WA 98057County:King Property Name:Future LivAway Suites Site Tax ID(s):088661-0011Zoning:Urban Center 2 Land Acres:1.67 Property Type:Land Property Subtype:Commercial Topography:LevelShape:Rectangular Flood Zone:X Land SF:72,895Usable Acres:1.7 Status:Closed Sale Land Acres:1.67 Financing:Cash to Seller Conditions of Sale:NormalGrantor:WA Renton Park LLC Grantee:Renton Hotel Holdings LLC Sale Date:3/28/2024 Price Per Acre:$1,852,472 Sale Price:$3,100,000 Property Rights:Fee Simple Book/Page or Ref Doc:2.02403E+13Traffic Count:13,792 Land Sale Comparable 3 Sale Information Sale Comments Traffic Count:10,037 Usable Acres:0.3 Property Name:Park Avenue Vacant LandAddress:240-250 Park Avenue N City, State Zip:Renton, WA 98057 Property Subtype:CommercialTax ID(s):722400-0270, 722400-0275, 722400-0280 Zoning:Neighborhood Commercial County:KingProperty Type:Land Shape:Rectangular Land Acres:0.31Land SF:13,504 Topography:Level Flood Zone:X Status:Closed Sale Land Acres:0.31 Book/Page or Ref Doc:2.02401E+11 Sale Date:1/1/2024 Price Per Acre:$2,419,355Sale Price:$750,000 Property Rights:Fee SimpleFinancing:Cash to Seller Conditions of Sale:Normal Grantor:Renton School District No 403 Grantee:Eight Park Investments Llc This is the sale of vacant land. Improved Sale Comparables Improved Sale Comparable 1 Sale Information Sale Comments No. of Buildings:Property Rights: $510.60 This is the sale of a car dealership. The property was vacant at the time of sale and on the market for 147 days. The property was originally listed for $4.2 million, or $584 per square foot. The buyer planned to move their automotive dealership to the property post closing. Retail-CommercialVehicle Related192105-9249 Commercial1.88 Auburn Car Dealership1344 17th Street SEAuburn, WA 98002KingProperty Type:Property Subtype:Tax ID(s): Zoning:Land Acres: Property Name:Address:City, State Zip:County: Land SF:Land-to-Bldg Ratio: Year Built: 81,89311.4 2001Quality:Average Parking Spaces:108Parking Ratio (GBA):15.1 7,168 7,1681Cash to SellerConditions of Sale:Grantor: RA:Price per RA:GBA:No. of Stories:Financing: Grantee: Closed Sale11/5/2024$3,660,000NAVFee SimpleNormal1344 17th Ave LLC Status:Sale Date:Sale Price: Caneel Bay Investments LLCTraffic Count:27,306 Median HH Income:$88,881 Improved Sale Comparable 2 Sale Information Sale Comments Land Acres:2.99 Land SF: This is the sale of an auto-dealership. Parking Ratio (GBA):13.0 Status: 130,244Land-to-Bldg Ratio:8.5 County:Snohomish General Commercial Property Type:Retail-Commercial Property Name:Former Northwest MotorsportsAddress:17321 Highway 99City, State Zip:Lynnwood, WA 98037 Traffic Count:32,082 Median HH Income:$108,029NFC Investments Property Rights: Property Subtype:Vehicle RelatedTax ID(s): Fee Simple Closed Sale RA:Sale Date:8/23/2024 Price per RA:$670.33 Year Built:2018Quality:Good Parking Spaces:198 003727-012-003-00 Zoning: Financing:Cash to SellerConditions of Sale:Normal Sale Price:$10,250,000 GBA:15,291No. of Buildings:NAV No. of Stories:1 15,291 Grantor:EP Realty WA LLC Grantee: Improved Sale Comparable 3 Sale Information Sale CommentsThis is the sale of a Lexus auto dealership. Median HH Income:$104,080Traffic Count:45,023 Sale Date:6/4/2024 GBA:32,118 Conditions of Sale:Normal $617.72Price per RA:Sale Price:$19,840,000No. of Buildings:NAV No. of Stories:1Property Rights:Fee Simple Financing:Cash to Seller Status:Closed Sale Land-to-Bldg Ratio:8.2 Year Built:2005 Address: Land SF:264,845 20300 Highway 99City, State Zip:Lynnwood, WA 98036County:Snohomish County Property Name: Grantor:WSGC LLC Grantee:Holman Seattle Real Estate LLC Parking Spaces:300Parking Ratio (GBA):9.3 Lexus of Seattle Quality:Average Property Type:Retail-CommercialProperty Subtype:Vehicle RelatedTax ID(s):005154-000-010-04, 005154-000-010- 08, 005154-000-011-01, 005154-000-011-02, 005154-000-011-03 Zoning:CGLand Acres:6.08 RA:32,118 Improved Sale Comparable 4 Sale Information Sale Comments Grantor:EP Realty WA LLC Grantee:500 River Road LLC Median HH Income:$105,173 No. of Buildings:NAV No. of Stories:2Property Rights:Fee Simple Financing:Cash to SellerConditions of Sale:Normal 15,446Sale Date:5/8/2024 Price per RA:$647.42Sale Price:$10,000,000 GBA:15,446 County:Pierce Status:Closed Sale RA: Property Type:Retail-Commercial Land-to-Bldg Ratio:17.6Year Built:1964 Land Acres:6.24 Property Subtype:Vehicle Related Land SF:271,814 City, State Zip:Puyallup, WA 98371 Tax ID(s):042021-4058, 721000-0093, 721000- 0095, 721000-0102, 721000-0110 Traffic Count:31,534 125Parking Spaces: This is the sale of a vehicle dealership. Parking Ratio (GBA):8.1 Address:514 River Road Quality:Average Property Name:Puyallup Car Dealership Zoning:General Commercial APPENDIX E: ENGAGEMENT LETTER www.PARTNERval.com June 13, 2025 700 Grady LLC c/o Mary Roloff Executive Assistant Car Pros Automotive Group (626) 489-0332 Maryr@carpros.com RE: Valuation Services – 700 South Grady Way, Renton WA 98057 Dear Mary Roloff, Partner Valuation Advisors (Partner) is pleased to provide this proposal for valuation and advisory services regarding the Property. Property Identification: Tesla Dealership 700 South Grady Way, Renton WA 98057 Property Type: Retail-Car Dealership Interest: Fee Simple Intended Users: 700 Grady LLC and Car Pros Automotive Group. No other intended users are intended by Partner Valuation Advisors. Intended Use: Internal asset valuation Values Requested: As Is Market Value Valuation Approaches: Sales and Cost Approach Property Inspection: Partner will conduct a physical inspection of the properties. Report Format: Appraisal Report Appraisal Requirements: Uniform Standards of Professional Appraisal Practice (USPAP) by the Appraisal Foundation, the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute Expenses: The fee includes the expenses pertaining to this assignment Fee: $4,000 Delivery Date: 15 business days from engagement and receipt of all data. Delivery Method: A PDF of the report will be delivered to the client identified on the engagement letter. Hard copies can be provided at the client’s request for an additional fee. The engagement letter is subject to the Terms and Conditions attached to this letter as Exhibit A, the Statement of Assumptions and Limiting Conditions attached to this letter as Exhibit B, each of which is incorporated by reference. We appreciate the opportunity to work with you on this project. Please sign a copy of this letter as confirmation of our agreements stated in this letter. Sincerely, Partner Valuation Advisors, LLC Agreed and accepted by: 700 Grady LLC Ryan McDonald, MAI, FRICS By: ___________________________________________ Managing Director Name: Mary Roloff 8000 Maryland Ave, Suite 1170, St. Louis, MO 63105 Title: Executive Assistant T: 314-983-8389 Proposal Version: Updated May 2025 EXHIBIT A: TERMS AND CONDITIONS A. ENTIRE AGREEMENT. These Terms and Conditions, in combination with those documents incorporating them by reference, constitute the entire agreement (the “Agreement”) to perform the described services (the “Services) between Partner as defined in the Proposal (“Partner”) and the client as defined in the Proposal (“Client”), and shall be deemed a part of such Agreement as though set forth in full therein. This Agreement supersedes all prior proposals or negotiations between the parties with respect to the subject Services. These terms and conditions will also apply to any contract, change order, or purchase order document issued by the Client for future services, whether or not it is expressly incorporated by reference herein. In the event of any conflict between these terms and conditions and the provisions of any purchase order or other document, these terms and conditions shall control unless the conflicting document expressly supersedes specific provisions hereof. This Agreement may not be modified except in a writing executed by both parties. B. SERVICES. The Services will be performed in material compliance with the provisions of the Agreement. Client has reviewed the Agreement in detail and agrees that the Services are appropriate to meet Client’s needs. Unless specified elsewhere in the Agreement, Partner shall furnish all technical and professional services, including labor, material, supplies, equipment, transportation, accommodation, subsistence and supervision of Partner’s personnel, to perform the Services. Client acknowledges that Partner may utilize third-party service providers in the performance of its obligations hereunder. Partner shall at all times be an independent contractor and no persons involved in connection herewith shall be considered employees of the Client for any purpose. C. FEES, INVOICING AND PAYMENT. Charges for all services shall be invoiced and paid in accordance with the Lump Sum Price or the Fee Schedule contained in the Agreement. Unless otherwise specified, invoices will be submitted to Client at time of report delivery. Payment is due upon receipt of the invoice and Client agrees that payments shall be made within thirty (30) days of the invoice date. Payment of Partner’s invoices shall be the primary, absolute and non-contingent obligation of the Client, and shall not be conditioned upon the closing of a loan, transaction or any other event. Should cancellation of the project occur after a verbal report of the findings has been provided, Client agrees to make a payment of 80% of the total cost due at the time of cancellation. Amounts not paid within thirty (30) days shall be subject to a late payment charge equal to the lesser of one and one-half percent (1½%) per month or the maximum amount allowed by applicable law. Should any invoice be in dispute, only that portion of the invoice in dispute may be held in abeyance until the dispute is resolved. Partner may suspend or terminate further performance under this or other agreements with Client upon reasonable notice for the non-payment of invoices. Partner shall have no responsibility or liability in connection with the Services, and Client shall have no right to rely on any report or other materials delivered, until all invoices have been paid in full. Partner shall be entitled to all legal fees, including but not limited to attorney’s fees associated with any attempt to collect on unpaid invoices associated with the Services. D. CONFIDENTIALITY. Information which the Client identifies as confidential upon provision to Partner, and which is not publicly available or is identified by Client as proprietary, will be treated as confidential in accordance with industry customs or standards. However, Partner shall have no liability to Client or any third party for disclosure of confidential information in notifications or reports which reveal potential issues related to the health, safety or welfare of the general public; subject to court order or other mandate; and/or further subject to public policy considerations. Partner shall have no liability to Client or any third party for notifications or reports made in accordance with such laws or orders and Client shall defend, indemnify and hold harmless Partner from and against any and all claims, demands, liabilities, costs and expenses, including reasonable attorney’s fees, incurred by Partner in connection with such notifications or reports. Should a Partner employee be identified as a witness in a litigation, dispute, or other legal proceeding relating to the Services, then Client agrees to pay the regular hourly rate for the cost of time expended in connection therewith, including but not limited to time spent responding to document subpoenas, testifying at trial or deposition, preparation time, and travel time, as well as all costs and expenses incurred. E. LIMITATION OF LIABILITY. NEITHER PARTY WILL BE LIABLE UNDER THIS AGREEMENT FOR ANY INDIRECT, INCIDENTAL, EXEMPLARY, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES INCLUDING, WITHOUT LIMITATION, ANY LOSS OF INCOME, PROFITS OR DATA OR DIMINUTION OF VALUE, EVEN IF THE OTHER PARTY HAS BEEN ADVISED OF, OR HAD REASON TO KNOW OF, THE POSSIBILITY OF SUCH DAMAGES. CLIENT AND PARTNER AGREE THAT PARTNER’S AGGREGATE LIABILITY TO THE CLIENT AND ALL THIRD PARTIES IN CONNECTION WITH THE SERVICES SHALL BE LIMITED TO GENERAL MONEY DAMAGES NOT TO EXCEED TWENTY THOUSAND DOLLARS ($20,000.00). THIS LIMITATION SHALL APPLY REGARDLESS OF THE CAUSE OF ACTION OR LEGAL THEORY PLED OR ASSERTED. THE PARTIES ACKNOWLEDGE THAT THEY HAVE CONSIDERED THE ALLOCATION OF RISK PRESENTED BY THE PROVISIONS OF THIS PARAGRAPH AND THAT THE ALLOCATION IS REASONABLE UNDER ALL FACTS AND CIRCUMSTANCES SURROUNDING THE AGREEMENT. F. WARRANTY. Partner warrants that the Services will be performed in a good and workmanlike manner in accordance with prevailing standards and practices applicable to the Services. PARTNER EXPRESSLY DISCLAIMS ANY AND ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. G. SAMPLING. Should collection of samples be required as part of the Services, Client recognizes and agrees that Partner is acting as a bailee and at no time assumes title to samples collected in completion of the Services. Client acknowledges that the act of sampling may affect, alter or damage the property, terrain, vegetation, and/or building, structures and improvements at, in or upon the site and Client accepts such risk. Partner will exercise reasonable efforts to limit such alteration or damage. Unless otherwise specifically agreed, Partner will not be responsible for the cost of any required repair or restoration. Partner may discard any and all samples immediately following analysis. Client may request, in writing, that any such samples be retained beyond such date, and in such case, Partner will ship such samples to the location designated by Client, at Client’s expense. Partner may, upon Client’s written request, arrange for storage of samples at mutually agreed storage charges. This is the only notice of intention to discard samples that will be given. H. INFORMATION PROVIDED TO PARTNER. Client shall provide Partner with such materials with respect to the assignment as are requested by Partner and in the possession or under the control of Client. Client shall provide Partner with sufficient access to the Property, and hereby grants permission for entry unless discussed in advance to the contrary. Partner shall have no liability with respect to any loss, damage, claim or expense incurred by or asserted against Client arising out of, based upon or resulting from Client’s failure to provide accurate or complete information or documentation pertaining to an assignment ordered or in connection with this Agreement, including Client’s failure, or the failure of any of Client’s agents, to provide a complete copy of the Report to any third party. I. RELIANCE. No party shall be allowed to use or rely on any report(s) or information generated in the completion of the Services until payment in full is made to Partner for any outstanding invoices related to the Services rendered. Client understands that Services governed by this Agreement are Proposal Version: Updated May 2025 strictly for its sole use and benefit. Use of the report for any other purpose or use by any party not identified as an intended user of the report and without Partner’s prior written consent is prohibited and Partner accepts no responsibility or liability for any use of the report in violation of the terms of this Agreement The parties expressly agree that no third party, including, but not limited to, any heirs, devisees, representatives, successors, assigns, affiliates, and subsidiaries of the parties or any partnership, corporation or other entity controlled by the parties or which control the parties, may rely on or raise any claim relating to the Services or this Agreement. Neither the whole report, nor any part, nor reference thereto, may be referenced or published in any manner without Partner’s prior written approval. Appraisal services shall be subject to additional reliance terms as set forth in Paragraphs C and R of the Addendum attached hereto and incorporated by reference. J. INDEMNIFICATION. In the event that Client permits a third-party to rely upon this Agreement, the Services, and/or reports provided by Partner in breach of Paragraph I of this Agreement and said third-party files a claim or lawsuit against Partner relating to this Agreement, the Services, and/or reports provided by Partner, Client agrees to indemnify and hold Partner harmless from any damages, losses, liabilities, and costs, including, but not limited to, reasonable attorney fees, costs, and expert witness fees, arising from any such third-party claim or lawsuit. K. NON-SOLICITATION. Client shall not hire nor solicit for employment any of Partner’s employees for a period of one (1) year subsequent to any services rendered by Partner for Client. In the event that Client hires one of Partner’s employees fewer than twelve (12) months after services rendered by Partner to Client, then Client agrees to pay Partner a referral fee equivalent to twenty five percent (25%) of the employee’s previous annual compensation and all costs related to training and/or licensure expended by Partner during the previous year. L. TERMINATION. This Agreement may only be terminated: (i) by either Partner or Client prior to substantial completion of the Services by giving thirty (30) days written notice; or (ii) by Partner at any time for cause, including but not limited to, Client’s breach of this Agreement, failure to pay Partner’s invoices, or on the occurrence of fraud or willful misconduct of Client, its employees or agents, and such termination shall be effective immediately upon written notice to Client . In the event of termination prior to completion of the Services (i) by Partner or Client for any reason, or (ii) by Partner for cause, Partner reserves the right to complete such analyses and records as are necessary to place its files in order and, where considered by Partner as necessary to protect its professional reputation, to complete a report on Services performed to date. Partner shall have the right to receive a reasonable termination charge to cover such costs and to be compensated for all Services performed prior to and in connection with such termination. In the event of termination, client shall have no rights of use or reliance upon the work. Paragraphs A, C, D, E, F, G, I, J, K, L, M, N, O, P, Q, R and S shall survive termination. M. RESOLUTION OF DISPUTES. This Agreement shall be governed by, subject to, and construed in accordance with the laws of the state of California, without regard to its conflict of law provisions or the conflict of law provisions of any other jurisdiction. With the exception of disputes arising from failure to pay any invoices or fees for services rendered, any claim, controversy, or action arising out of, or related to, this Agreement or the alleged breach thereof, shall be submitted to mandatory non-binding mediation through a third-party mediator to be agreed upon by the Partner and the moving party. A “Notice of Mediation” shall be served by any party to commence the mediation process. The service of the Notice of Mediation shall stay the running of the limitations period set forth in Paragraph M herein for a period of 60 days unless a longer or shorter period of time is agreed to by the parties. In the event that the parties cannot reach a resolution through mediation, the parties may proceed to litigate their claims in Court. Any litigation so instituted shall be filed and litigated in the State Court of California, County of Los Angeles in accordance with the laws of the State of California, and subject to Paragraph L herein. With the exception of disputes arising from failure to pay invoices or fees for services rendered, each party shall pay the fees of its own attorneys, and the expenses of its witnesses and all other expenses connected with the presentation of its case. N. LIMITATIONS PERIOD. Partner and Client agree that, other than an action filed by Partner for nonpayment of invoices under Section C, above, any legal action or lawsuit by one party against the other party or its affiliates, officers, directors, employees, contractors, agents, successors, assigns, or other representatives, whether based in contract, warranty, indemnity, negligence, strict liability or other tort or otherwise, relating to (a) this Agreement or the Report, (b) any Services performed under this Agreement or (c) any acts or conduct relating to such Services, shall be filed within eighteen (18) months from the date of delivery to Client of the Report to which the claims or causes of action in the legal action or lawsuit relate. The time period stated in this section shall not be extended by any incapacity of a party or any delay in the discovery of the underlying claims, causes of action or damages. O. CORPORATE PROTECTION. It is intended by the parties to this Agreement that Partner’s services in connection with the project shall not subject Partner’s employees, officers, or directors to any personal legal exposure for risks associated with this project. Therefore, the Client agrees that as Client’s sole and exclusive remedy, any claim, demand or action shall be directed and/or asserted only against Partner, a California corporation, and not against any of Partner’s employees, officers, or directors. P. NO WAIVER. The failure of either party to exercise any right or remedy hereunder or to take any action permitted on a breach by the other party shall not be deemed a waiver of such right or remedy or of any other rights or subsequent breach of a like or different nature. Q. SEVERABILITY. The provisions of this Agreement are severable. The invalidity of any part of this Agreement shall not invalidate the remainder of the Agreement or the remainder of any portion hereof. R. OWNERSHIP AND RETENTION OF DOCUMENTS. With the exception of Partner submittals and deliverables to Client (which submittals shall be jointly owned by Client and Partner), all documents and information provided, prepared, and/or researched during this engagement, including, without limitation, historical research, property data, field data, field notes, photographs, laboratory test data, calculations, measurements and analyses are prepared as instruments of service and shall remain the physical and intellectual property of Partner, and shall not be considered a “work for hire.” Partner will retain all pertinent records relating to the Services performed for a period of two years, except for records relating to Appraisal services, if applicable, which shall be retained for sixty (60) months following the completion of Partner’s services. After this period, they may be discarded. S. NO ASSIGNMENT. Neither party shall assign their rights under this Agreement to any third party, including, but not limited to, any heirs, devisees, representatives, successors, assigns, affiliates, and subsidiaries of the parties or any partnership, corporation or other entity controlled by the parties or which control the parties without the prior written consent of the other party, which consent shall not be unreasonably withheld or delayed. Each party, and the person executing on behalf of such party, represent and warrant that such person has the full power and authority to bind the party represented. Proposal Version: Updated May 2025 Exhibit B: Assumptions & Limiting Conditions A. VALUATION SERVICE PROVIDER. Partner Valuation Advisors, LLC ("PARTNER") is a real estate appraisal and advisory firm with expertise in valuation services. PARTNER is a separate legal entity possessing some common ownership and management services with Partner Assessment Corporation, Inc. ("PAC"). PARTNER are not experts in engineering, environmental assessments and conditions (including but not limited soil and subsoil matters), zoning/regulatory compliance, seismic, survey, and/or title matters, and the purpose of this engagement does not include an expectation from the Client that any or all of such services have been or will be provided without the need for a separate engagement of such services from an outside entity which will be subject to a separate limitation of liability. If any such services are separately provided and referenced in our report, and if such services are found to be in error which causes a material impact on our value conclusion, PARTNER reserves the right to amend our value opinion accordingly. If any environmental impact statement is required by law, the report assumes that such statement will be favorable and will be approved by the appropriate regulatory bodies. B. FORECAST UNCERTAINTY. All work product we deliver to you (collectively called "report") represents an opinion of value, based on historical information and forecasts of property and market performance and conditions. Actual results may vary from those forecast in the report. C. RELIANCE PARTY. The report is confidential to the party to whom it is addressed and those other intended users specified in the report for the specific purpose to which it refers. Use of the report for any other purpose or use by any party not identified as an intended user of the report without our prior written consent is prohibited, and we accept no responsibility for any use of the report in violation of the terms of this Agreement. Neither the whole report, nor any part, nor reference thereto, may be referenced or published in any manner without our prior written approval. D. HAZARDOUS MATERIAL EXCLUSION. Unless specifically noted, in preparing the Appraisal Report, PARTNER will not be considering the possible existence of asbestos, PCB transformers, or other toxic, hazardous, or contaminated substances and/or underground storage tanks (collectively, “Hazardous Material) on or affecting the Property, or the cost of encapsulation or removal thereof. Further, Client represents that there is no major or significant deferred maintenance of the Property that would require the expertise of a professional cost estimator or contractor. If such repairs are needed, the estimates are to be prepared by others, at Client’s discretion and direction, and are not covered as part of the Appraisal fee. E. TAX MATTERS. In the event Client intends to use the Appraisal Report in connection with a tax matter, Client acknowledges that PARTNER provides no warranty, representation or prediction as to the outcome of such tax matter. Client understands and acknowledges that any relevant taxing authority (whether the Internal Revenue Service or any other federal, state or local taxing authority) may disagree with or reject the Appraisal Report or otherwise disagree with Client’s tax position, and further understands and acknowledges that the taxing authority may seek to collect additional taxes, interest, penalties or fees from Client beyond what may be suggested by the Appraisal Report. Client agrees that PARTNER shall have no responsibility or liability to Client or any other party for such taxes, interest, penalties or fees and that Client will not seek damages or other compensation from PARTNER relating to any such taxes, interest, penalties or fees imposed on Client, or for any attorneys’ fees, costs or other expenses relating to Client’s tax matters. F. INFORMATION RELIANCE. The appraisal process requires our evaluation of information from a wide variety of sources including the Client, its agents, and other sources. We have assumed that all information furnished by others is correct and complete, up to date and can be relied upon, but no warranty is given for its accuracy. We do not accept responsibility for erroneous information provided by others. We assume that no information that has material effect on our appraisal has been withheld. We are not liable for any deficiency in the report arising from the inaccuracy or insufficiency of such information, documents and assumptions. G. MARKETABLE TITLE. We assume each property has a good and marketable title, including but not limited to, no encumbrances, restrictions, easements, or other adverse title conditions, which would have a material effect on the value of the interest under consideration. There is no material litigation pending involving the property. H. REGULATORY COMPLIANCE. We assume that the property possesses and/or is compliance with all required licenses, certificates of occupancy, consents, environmental regulations, and other legislative or administrative requirements from any local, state, or national government or private entity or organization, or possession or compliance can be obtained or renewed for any use on which the opinion of value contained in this report is based. I. FLOOD RISK. We may have reviewed available flood maps and may have noted in the report whether the property is generally located within or out of an identified Special Flood Hazard Area. However, we are not qualified to detect such areas and therefore do not guarantee such determinations. The presence of flood plain areas and/or wetlands may affect the value of the property. Any opinion of value we include in our report assumes that the floodplain and/or wetlands interpretations are accurate. J. ADDITIONAL SERVICES. Client agrees that if PARTNER is subpoenaed or ordered to give testimony, produce documents or information, or otherwise required or requested by Client or a third party to participate in meetings, phone calls, conferences, litigation or other legal proceedings (including preparation for such proceedings) because of, connected with or in any way pertaining to this engagement, the Appraisal Report, the Appraiser’s or PARTNER’s expertise, or the Property, Client shall pay PARTNER’s additional costs and expenses, including , but not limited to PARTNER’s attorneys’ fees, and additional time incurred by PARTNER based on PARTNER’s then- prevailing hourly rates and related fees. Such charges include and pertain to, but are not limited to, time spent in preparing for and providing court room testimony, depositions, travel time, mileage and related travel expenses, waiting time, document review and production, and preparation time (excluding preparation of the Appraisal Report), meeting participation, and PARTNER’s other related commitment of time and expertise. Hourly charges and other fees for such participation will be provided upon request. In the event Client requests additional appraisal services beyond the scope and purpose stated in the Agreement, Client agrees to pay additional fees for such services and to reimburse related expenses, whether or not the Proposal Version: Updated May 2025 completed report has been delivered to Client at the time of such request. K. CONSTRUCTION RISK. Any proposed improvements, on or off-site, as well as any alterations or repairs considered will be completed in a workmanlike manner according to standard practices. L. PRUDENT OPERATION. The property and its use, management, and operation are in full compliance with all applicable federal, state, and local regulations, laws, and restrictions, including without limitation environmental laws, seismic hazards, flight patterns, decibel levels/noise envelopes, fire hazards, hillside ordinances, density, allowable uses, building codes, permits, and licenses. M. DATA VISUALS. The maps, plats, sketches, graphs, photographs, and exhibits included in this Report are for illustration purposes only and shall be utilized only to assist in visualizing matters discussed in the Report. N. VALUE ALLOCATIONS. Any allocations of the total value estimate in the Report between land and improvements apply only to the existing use of the subject property. The allocations of values for each of the land and improvements are not intended to be used with any other property or appraisal are not valid for any such use. O. FURNITURE, FIXTURES, & EQUIPMENT. All furnishings, equipment, and business operations have been disregarded with only real property being considered in the Report, except as otherwise expressly stated and typically considered part of real property. The allocations of the total value estimate in the Report between land and improvements apply only to the existing use of the subject property. The allocations of values for each of the land and improvements are not intended to be used with any other property or appraisal are not valid for any such use. P. PROPERTY BOUNDARIES & ENCROACHMENTS. We did not conduct a formal survey of the property and assume no responsibility for any survey matters. The Client has supplied the spatial data, including sketches and/or surveys included in the report, and we assume that data is correct up to date and can be relied upon. Q. PROPERTY IMPROVEMENTS & MEASUREMENTS. Unless otherwise noted in the report, we did not physically measure the site or building improvement component(s) of the property. Referenced areas and other sizes were estimated from a variety of sources including public records, property ownership, client-provided document(s) and/or other sources, and we assume that the relevant areas or sizes provided are correct and can be relied upon R. TENANT CREDIT RISK. We have not made any investigation of the financial standing of actual or prospective tenants unless specifically noted in the report. Where properties are valued with the benefit of leasing, we assume, unless are informed otherwise, that the tenants are capable of meeting their financial obligations under their leases, all rent and other amounts payable under the lease have been paid when due, and that there are no undisclosed breaches of the leases. S. RELIANCE. No party shall be allowed to use or rely on any report(s) or information generated in the completion of this project until payment in full is made to PARTNER for any outstanding invoices related to the Services rendered. Client understands that Services governed by this Agreement are strictly for their sole use and benefit. The parties expressly agree that no third party, including, but not limited to, any heirs, devisees, representatives, successors, assigns, affiliates, and subsidiaries of the parties or any partnership, corporation or other entity controlled by the parties or which control the parties, may rely on or raise any claim relating to the Services or this Agreement. Client shall not disseminate, distribute, make available or otherwise provide our Appraisal Report prepared hereunder to any third party (including without limitation, incorporating or referencing the Appraisal Report, in whole or in part, in any offering or other material intended for review by other parties) except to (i) any third party expressly acknowledged in a signed writing by PARTNER as an “Intended User” of the Appraisal Report provided that either PARTNER has received an acceptable release from such third party with respect to such Appraisal Report or Client provides acceptable indemnity protections to PARTNER against any claims resulting from the distribution of the Appraisal Report to such third party, (ii) any third party service provider (including rating agencies and auditors) using the Appraisal Report in the course of providing services for the sole benefit of an Intended User, or (iii) as required by statute, government regulation, legal process, or judicial decree. In the event PARTNER consents, in writing, to Client incorporating or referencing the Appraisal Report in any offering or other materials intended for review by other parties, Client shall not distribute, file, or otherwise make such materials available to any such parties unless and until Client has provided PARTNER with complete copies of such materials and PARTNER has approved all such materials in writing. Client shall not modify any such materials once approved by the PARTNER. In the absence of satisfying the conditions of this paragraph H with respect to a party who is not designated as an Intended User, in no event shall the receipt of an Appraisal Report by such party extend any right to the party to use and rely on such report, and PARTNER shall have no liability for such unauthorized use and reliance on any Appraisal Report. Furthermore, the conclusions and any permitted reliance on and use of the Appraisal Report shall be subject to the assumptions, limitations, and qualifying statements contained in the report.